Managing Risk when Investing in Precious Metals

All types of investing involve risk, including precious metals. This chart shows some of the major choices you have for investing in precious metals based on risk:

Type	Relative risk level	Most common direct type of risk
Bullion coins and bars	Low	Market, physical
Numismatic and collectible	Medium	Fraud, physical
Major mining companies	Low-medium	Market, political
Midsize mining companies	Medium-high	Market, political
Junior mining companies	High	Market, political
Mutual funds	Low	Market, political
Exchange traded funds	Low-medium	Market, political
Futures	Highest	Market, exchange
Options: covered call writing	Low	Market
Options: buying calls and puts	High	Market

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Source:http://www.dummies.com/how-to/content/managing-risk-when-investing-in-precious-metals.html