Investing in Precious Metals

 | 
July 21, 2022
UPDATED: 
July 21, 2022

Why Should I Invest in Precious Metals?

Gold and silver especially have been around for centuries and have been in the hands of the world's wealthiest for most of that time. These two metals have lasted longer than some civilizations. You can still invest in these metals and more today, and it will always be a good investment.

There are many people that can help you to invest in gold, silver, and other precious metals. You can read here and learn more about some of the people that can help you. This is a review of one of the many places that can help you to invest in these metals.

Listed below are ten good reasons to invest in gold, silver, and other precious metals.

1. Gold and Silver Provide Diversification

When you meet with a financial adviser, they always say that you need to diversify your investments, but they rarely mention investing in precious metals. This is an error on their part because gold and silver do well in most markets, whether the economy is good or bad. While they mention stocks, bonds, and even real estate and personal property, precious metals are rarely mentioned.

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2. Gold and Silver Allow for Privacy

It is difficult to keep anything private nowadays, especially with the internet and other public records. When you invest in stocks and bonds, and other paper investments, there is a paper trail that can be found. If you invest in gold, silver, platinum, and palladium, it is more difficult for others to know that you have them. You can store these metals in a safe in your home and no one would ever know that you had them. You only need to report the gains that you have made on precious metals if you sell them for a profit.

3. Gold and Silver Are Portable Wealth

You can carry your gold and silver with you wherever you go. If the government becomes unstable, you can pack up your gold and silver and move to another country if you wish to. You can carry a lot of gold and silver coins with you, and no one will know but you. You can then use the gold and silver to begin a new life. To learn more about how to invest in gold and why this is a good idea, you can check out this website: https://www.investopedia.com/articles/basics/09/precious-metals-gold-silver-platinum.asp. This site contains information that can help you to make good investments.

4. Gold and Silver Ease Retirement Concerns

Gold, silver, and other precious metals will help you in your retirement years.  Many companies are having issues keeping their retirement funds intact, making it scary for future retirees. If these retirees also have precious metals in their portfolio, they will be ahead of the game instead of behind it. 

Gold, Bars, Wealth, Finance, Gold Bars, Deposit

5. Gold is a Safe Haven Asset

When the economy starts to fail, people rush to buy precious metals, especially gold. This is because gold will rise in value during these times. Gold stands up well in times of political uncertainty, stock market crashes, recession, and other types of economic downturns. Silver is also a good investment but is not as good as gold as a safe haven asset.

6. The Value of Gold and Silver is Never Zero

Paper currency can eventually lose its value due to changes in government or because inflation or recession, but gold and silver, and other precious metals, retain some value. Gold and silver never have a value of zero even in the worst of times. 

Bull, Bear, Stock, Market, Business, Finance, Exchange

7. Gold Retains its Value in Bear Markets

When it is a bear market, when stocks and bonds lose more than twenty percent of their value, precious metals, especially gold, will still do well in the markets. Even when everything else is losing its value, gold will retain its value and maybe even increase in value. It is always good to have gold and other precious metals in your investment portfolio. To find out what a bear market is and how it affects the economy, you can do some simple research. You can find out more information about all of this. 

8. Gold and Silver and Other Precious Metals Have Enduring Demand

As the world population keeps growing, so does the value of precious metals such as gold and silver. The demand for these precious metals grows right along with the population, and since there is a limited amount of these metals, the price goes up for most of them. These precious metals will continue to grow in value in the coming years. 

9. Gold and Silver Make Good Inflation Hedges

Everyone thinks that when inflation happens, prices go up, but what is really happening is that the value of the currency is going down. Prices go up for a couple of reasons, the cost of supply and demand. Currency is overproduced, bringing the value of the currency down. In other words, there are too many dollars chasing a smaller amount of goods causing prices to rise. 

Gold and silver do well in times of inflation because they are not susceptible to production increases. You can only increase the amount of gold and silver in the world by the slow process of mining. This means that the price of gold and silver and other precious metals will remain the same or rise in value.

10. Gold Guards Against Financial Bubbles

The Federal Reserve began producing currency at an unprecedented rate in recent years. This was in an attempt to rescue the economy by hedging mortgages, stocks, bonds, and other economic risks, in effect making bubbles. These bubbles get punctured when demand and supply cause a collapse. 

Gold and silver are nearly impossible to inflate, making them great investments during these times because they will not collapse as the economy does.

Conclusion

Gold and silver are always great investments, as are other precious metals. They do not often lose value as other forms of currency do. They are good hedges against bad economies. They can be used when entire governments fail, and the currency system goes down in the fall. 

Author

  • Chuck is Score LA’s Executive Director of Events and Marketing. He aims to help business owners and would-be entrepreneurs in Los Angeles improve their business practices.

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