7 benefits of investing in precious metals

0


[ad_1]

You may be thinking about investing in precious metals because gold prices are on the move. Or maybe you have a friend who has made money buying and selling gold and silver as part of their investment portfolio.

There are many reasons to invest in precious metals. It’s not just because gold bars are a popular investment or current prices may be a great opportunity to get into the promotion!

Here are seven compelling reasons why you should invest in precious metals:

1. Low barrier to entry

Stocks can be exciting to invest in, but you usually have to work through a broker to buy and sell them. Don’t forget about the forms and other hurdles. And real estate? Talk about paperwork …

But with precious metals, you can buy and sell without worrying about red tape. This is because buying gold, silver, and other precious metals is as easy as buying a book on Amazon or picking up a shirt at the department store.

2. Protection against inflation

They say a dollar is no longer worth what it used to be. Whoever “they” are also knows what they are talking about. Have you seen the prices of groceries, gas, or even lumber lately?

The dollar’s purchasing power has shrunk over the past century.

As the dollar and other fiat currencies depreciate, the value of gold and silver goes to the beat of its own drum. And that may well be because when the dollar stutters, the precious metals usually soar. Precious metals keep proving to be solid, even when the economy is shaky.

3. Property, plant and equipment

Corporate stocks can be your piece of the corporate pie, but unless you have a significant stake in something, do you really “own” that company? Why even your house? Unless you directly, freely, and clearly own it – no mortgage or second mortgage – it’s not really your home.

But precious metals? They are yours. Even if you choose to off-line your precious metal as part of an Individual Precious Metals Retirement Account (IRA), those assets are yours. You can sell it, pass it on to the next generation, whatever interests you. The feeling of security and satisfaction that comes with owning precious metals is unbeatable.

Gold Silver

Gold and silver bars are tangible assets that you can physically own.

4. High liquidity

Investing is one thing, but getting a good return is another. Investing can often be complicated to sell. Think of houses in withered cities that people are losing to greener pastures or property in a neighborhood where crime or pollution has increased. You may not get what you paid into a property back – if you can even sell it.

But gold and silver? They are different. Whether the economy is good or bad, you will find plenty of buyers to buy these precious metals for you at the right price. That makes the metals very fluid.

5. Timeless investments

Think about some of the investments that people are spending a lot of money on today, but not about 50 years ago, 40 years ago, or even 20 years ago. Do you think of cryptocurrency or non-fungible tokens (NFTs)?

Then look at gold and silver – two precious metals that humankind has treasured for at least 5,000 years. Some investments may disappear with the next cyberattack, but gold and silver are going nowhere. Their outstanding importance in the fields of art, jewelry, industry and the list can be continued indefinitely, so that gold and silver, along with other precious metals, always represent a coveted value – no matter what.

6. Portfolio Diversification

We have all heard the advice, “Don’t put all your eggs in one basket.” This applies directly to the precious metals. You never want your investment portfolio to consist of just one asset class.

One of the greatest strengths of gold in this regard is that it is uncorrelated asset. Its price tends to move independently of other markets such as stocks or bonds. This ensures that you are taking advantage of a truly diversified portfolio.

7. Safe haven

Gold and silver have each earned their status as safe investments. “Safe haven” means that these metals provide stability in times of economic stress. Even in a bad economy, gold prices hold their value – and even tend to rise.

Another aspect of a secure system? Gold and silver are free from government interference that can affect their value.

Options for investing in precious metals

There are too many reasons to invest in precious metals to list here and there are many ways to invest in gold and silver. The first step is to know what precious metal options are available to you:

Coins

Silberadler coin collection

Coins can serve both as an investment and as a collector’s item.

One of the most common ways to invest in gold bars is by buying coins with precious metals. Gold and silver coins are the most popular options, but platinum and palladium coins are also becoming increasingly popular in fashion.

One of the many advantages of investing in bullion coins is that they are government minted and guaranteed. And because they are monetized, they are always worth at least their face value and can theoretically be spent as money.

Round

1 ounce silver Buffalo Round 99.9% silver

The Silver Buffalo Round is a popular design.

Rounds are typically less expensive than coins, but can offer the same aesthetic appeal that coins do. Rounds are also very collectible, which means that they enjoy a double market like rounds with both gold investors and those who collect Exonumia.

Precious metal rounds are usually a product offered by private minters. Some state mints – including the United States Mint – also sell non-monetized precious metal products, which are effectively classified as rounds.

bars

Best Silver Bars (1)

Gold and silver bars come in different sizes.

This is generally the most cost-effective option of the three. Gram for gram, bars offer the most economical way to own precious metals.

Like rounds, bars are usually manufactured by private companies, although some state mints, including the Royal Canadian Mint, make and sell bars.

Meanwhile, many of the private mints that sell bars have become household names in the gold and silver staple world. Your products serve a collector’s item as well as a gold bar.

Ready to Buy Precious Metals?

Whichever precious metal products you choose, buy them from a reputable dealer. Unfortunately there are too many counterfeit coins, cartridges and bars. Many counterfeits pretend to be genuine – and may not be recognizable to the untrained eye.

However, you don’t have to worry if you buy your precious metal items from a dealer who knows their stuff. They’ll also stand behind what they sell with a guarantee of satisfaction and authenticity.

Your best bet is to look for precious metals dealers who have a wide range of the products you want to invest in. The best gold and silver dealers are affiliated with reputable organizations such as the National Inflation Association and the National Coin & Bullion Association.

In addition to having a broad network and a good selection of quality bars, your gold and silver dealer should be happy to educate you about your options. That way, you can make the best decisions about the precious metals you want to invest in.


Joshua McMorrow-Hernandez is a journalist, editor, and blogger who has won multiple awards from the Numismatic Literary Guild. He has also authored numerous books, including works detailing the history of the United States Mint and US coinage.

For more information on investing in precious metals from the authors of Gainesville Coins:

Investing In Gold: What You Need To Know

Investing in Silver: Guide for 2021

Investing in Platinum – Everything You Need to Know

How to Buy Gold and Silver: 5 Easy Steps

What’s the cheapest way to buy gold (without getting Bamboozled)?

What NOT to do when buying gold

[ad_2]

Leave A Reply

Your email address will not be published.