There are many reasons why adding gold and silver to your financial portfolio is a wise investment strategy.
HISTORIC VALUE AND PROTECTION
Precious metals like gold and silver have remained strong and stable throughout history and have been a trusted source of wealth protection. They have been a reliable hedge against weak markets and have consistently provided financial security during volatile economic times.
Gold has maintained its value since ancient times, unlike paper currency or other assets. The ease of working with and stamping gold coins originates from its non-corrosive nature and the ability to melt it using a common flame. Gold’s unique properties, global appeal, and rich history continue to sustain its worth.
Silver has a history of dual appeal. Along with its intrinsic value, silver’s rare characteristics and diverse properties, including ductility and malleability, electrical and thermal conductivity, physical strength and the ability to withstand high temperatures make it highly valued as an industrial metal used in almost every major industry, from electronics and medical applications to batteries and solar panels.
LIQUIDITY
Gold and silver are two of the most liquid assets you can own and among the very few you can physically hold. Having physical possession means you can sell your gold and silver with less hurdles than with other investments, such as stocks. People worldwide value and trade gold and silver coins and bullion bars, making them easily tradable and sellable in almost any location.
Gold is the metal we fall back on when other forms of currency don’t work. Silver is practical for small purchases and for selling too, and since silver is available in small denominations, you can easily sell just what you need. Silver and gold’s representation as the ultimate forms of money stems from their inability to be produced out of thin air like paper or digital forms, ensuring that their value does not diminish over time
HEDGE AGAINST INFLATION AND DEFLATION
Gold and silver are hedges against depreciation of paper assets and against inflation. Since precious metals are finite resources we cannot print, whenever the government prints more money, gold and silver increase in value. When confidence in the government is lost, the price of gold and silver usually sees an increase. Whenever the cost of living increases, the price of gold and silver tends to do likewise.
During periods of deflation when prices drop, business activities slow down, and the economy is burdened with excessive debt, such as during the Depression, individuals often view precious metals as the safest commodity.
DIVERSIFICATION
Diversification is an essential investment strategy and key to long-term growth and wealth preservation. Precious metals provide wealth security and portfolio diversification.
In a balanced portfolio, the positive performance of some investments can absorb the negative performance of others. When economic instability causes the stock market to drop, gold and silver often go up. Many of the forces that influence stocks and other paper assets do not have the same influence on precious metals. Diversifying your portfolio with physical gold and silver can add a level of security for your savings and retirement accounts that paper investments simply cannot.
SUPPY AND DEMAND
The demand for gold and silver as effective additions to diversified investment portfolios has increased among investors, and the demand from central banks, governments, financial institutions, and industry are increasing at unprecedented levels. Increasing political and economic volatility continues to increase the demand for security and stability in the supply of gold and silver, and the use of these precious metals in technology continues to increase around the world.
The most recent report from the World Gold Council shows a continuing decrease in mined gold supply compared to gold demand. In the past, governments and other institutions held large inventories of silver. Today, global stockpiles are at record lows and silver supplies are dwindling as silver becomes a global investment asset. A reduction in the supply of gold and silver generally causes an increase in their prices.
GROWTH POTENTIAL
Because no one can create gold and silver out of thin air, they represent limited resources that can ultimately increase in value.. Historically, gold and silver have provided significant returns to investors. Compared to savings accounts and other low-yielding investments, precious metals are a desirable investment because they can be an opportunity for more significant growth potential.
PEACE OF MIND
A precious metals investment offers peace of mind knowing that you won’t be entirely dependent upon the uncertainty of paper assets for your future financial security. Physical gold and silver also provide protection against hacking and cybercrime in all forms. They cannot be erased or deleted like a digital asset.
PRIVACY
When you purchase precious metals for delivery to your home, your purchases remain completely private. You can maintain the confidentiality of gold and silver in your possession according to your preferences, without any involvement from government or financial institutions in your personal financial decisions.
TAX BENEFIT
Precious metals IRAs are approved by the federal government and offer all of the tax benefits of a traditional IRA account, without the uncertainty. Learn more about precious metals IRAs.
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