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Common Mistake #5 – Superficial Research

When faced with something new, it’s easy to simply scan the owner’s manual for the basic information and then “wing it.” It is tempting to do the same when beginning an investment in precious metals.  In the precious metals market, superficial research is just looking at such general information as spot prices — in other words, doing the bare minimum to prepare yourself before jumping in. The downfall of not doing serious research is obvious. There are many, many layers of information that must be sifted through before an investor can feel confident in his investment choices.

Do your research

From forums to chat rooms to blogs, there are multiple sources of information available online for those who want to invest in precious metals. Precious metal forums (goldismoney.info , cointalk.com , etc.) are great places to read other investors’ opinions, strategies and the experiences they’ve had with specific dealers. In a chat room, you can talk to others one on one. This conversation can lead to invaluable information, not to mention the fact that you can ask specific questions and judge answers for yourself very quickly.  Thanks to major online portals like Facebook and LinkedIn,there are many investor groups you can join to learn more as well to make new friends, learn more about the industry and locate additional sources of information. But also remember that you do not know what hidden agenda, if any, someone may have, so consider all aspects of any investment advice that anyone offers to you very carefully.

Industry respected company blogs (like the official APMEX blog at apmex.wordpress.com) are another solid source of information for the astute investor. From learning about popular products to recent news and movements in the market, company blogs can provide great insight, especially for those new to precious metals investing. Other good sources of investment information are mainstream news providers such as The Wall Street Journal,The Street.com, Yahoo Finance or Reuters. News on the Internet travels fast, both good and bad, so due diligence is an absolute must. Try to corroborate information on multiple sites; the more mainstream the better, especially if the news or opinion seems far-fetched or unreasonable. Trust your inner judgment – if something sounds unusual,verify it with multiple reliable sources.

Learn about the preciousmetals in which you are interested in investing. Learn about the different forms, shapes and sizes, in which the metal is manufactured.Learn about the world and private mints that produce these products.Learn also about the leading dealers that sell these products. In the beginning, it may be appropriate to concentrate on a specific metal,such as gold or silver,and invest in it once you are “smarter” about it. Once you are comfortable with the unique market of the metal of your choice, then you can diversify into other precious metals. If you follow this patient advice, your success ratio will likely improve. Good luck!

Disclaimer

The American Precious Metals Exchange, Inc. (APMEX)is not a registered investment advisor. Readers are advised that the material contained herein should be used solely for informational purposes. It is not the intention of APMEX to tell or suggest which precious metals investments members or readers should buy or sell for themselves. Site users should always conduct their own research and due diligence and obtain professional advice before making any investment decision. APMEX will not be liable for any loss or damage caused by a reader’s reliance on information obtained in any of our newsletters,special reports, email correspondence or on our website.Our readers are solely responsible for their own investment decisions.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of investments. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in our publications or on our website should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions.

Any opinions expressed are subject to change without notice. Owners,employees and writers may hold positions in the investments that are discussed in this publication.

[The Economic Survivor has no affiliation with APMEX and does not endorse them in any way]