Some precious metals purchases are better suited for speculation and for investors with a higher risk tolerance, while others are better for investors with a longer investment horizon. The wide range of choices available can be confusing; they include futures contracts and options, certificates, pooled accounts, mutual funds, exchange-traded funds, coins, mining stocks, and of course owning, rather than investing in, physical bullion.

This guide introduces investors and their advisors to the various choices available, so they can choose the precious metals options that best suit their financial needs.

As this guide will show, each has its advantages and disadvantages, as well as different costs, risks and tax implications. On the surface, it would seem that they should all track the price of the underlying metal, but such is not the case. That is why an investor must be clear about their objectives, financial situation, time horizon, risk tolerance, liquidity requirements and tax implications. After considering these factors, the investor is in a position to make intelligent and informed decisions about precious metals.