Investing in gold and silver is easiest way to diversify a portfolio and hedge against inflation. Anytime inflation has caused prices to go up, both the gold and silver market have escalated in price. Holding an intrinsic value, the precious metals have been utilized as an effective tool for trading and are a common method for barter. With the recent instability of world economies over the last few years, many investors have taken to purchasing gold and silver bullion coins and bars as a way to safeguard against other volatile trading instruments including mutual funds, bonds and stocks.Movie Fifty Shades Darker (2017)
Physically Holding onto Assets
Many individuals investing in gold and silver tend to acquire US minted bullion gold Eagles, silver Eagles, gold Buffaloes and other coinage. Offered at extremely competitive prices, physical silver and gold bullion provides a way for an investor to physically hold onto their assets to be stored in safety deposit boxes, or a safe at home.
A Tool for Diversification
Out of all the available types of diversification, investing in gold and silver is an easy way to commit a specific percentage of investment monies into the precious metals market. It is one of the few assets that cannot be confiscated by governments, and is easily converted into cash, currency or other tradable tool. As many economic currencies around the world decline in value, the worth of gold and silver continues to escalate, making it a valuable asset during times of financial struggle.
Historically, Precious Metals Rise in Value
With no foreseeable change in the current trend of economic uncertainty, many investors consider adding gold and silver to their portfolio. Historically, precious metals have shown a continuous stability for decades, and continue to rise over time. As a long-term investment, investing in gold and silver makes good sense, either by purchasing jewelry, or physical coins and bullion bars.
A Limited Supply and High Demand
With the limited amounts of gold mined every year and the continuing demand, investors realize there is a significantly high probability that the gold spot price will continue to increase in upcoming years. Likewise, silver is one of the most utilized precious metals on earth. It is used in the commercial industry, jewelry industry and generates huge demands in the manufacturing of electronic components. Because of that, the ability to mine enough precious silver to reach demands has been challenging at best. The future spot price of silver is expected to steadily increase over the next few decades.
Out of all of the precious metal markets, gold and silver seem to generate the greatest percentage increase in the shortest amount of time. As an investment strategy, each investor should allocate a portion of their investment funds to build a core physical position in both gold and silver by holding the precious metal as a physical asset, instead of purchasing gold or silver certificates. There is no better way to preserve, protect and diversify an individual’s wealth than investing in gold and silver.