Benefits of Investing
Precious metals are not subject to the same volatility of other assets. When you diversity your portfolio with silver, gold, and other metals, you’re adding an additional level of wealth security.
Precious Metals can help protect your wealth from a variety of dangers such as market volatility or decline in the US Dollar. It will give yourself and your family more peace of mind.
A fundamental investment strategy is diversification. Mutual funds, stocks, and bonds – are some of the most popular investment options amongst Americans. However, in today’s globalized economy, these investments tend to fluctuate. Many people are beginning to negate the risk of putting all their eggs in one basket and diversifying their portfolios with precious metals.
Hedge Against Inflation
You can preserve your purchasing power for the future by hedging against inflation, and investing in precious metals will allow you to do so. In fact, as the value of the dollar is increasingly becoming weaker, the value of metals like Gold tends to go up.
Because precious metals that you invest in are solely in your possession, your portfolio doesn’t need to be monitored by the government or any financial institution. Ownership of your precious metals is completely private unlike many other types of assets. Your investments. Your business.
Precious metals are among the most liquid assets possible to hold as an investment. Gold bullion, for example, are valued almost completely by their metal content and weight. Tangible resources like these are extremely liquid and uninfluenced by other factors that threaten other investment types. And unlike other investment options, you always have physical access to them.
As finite and tangible resources, precious metals maintain unique growth potential. In the past, gold and silver had great returns. Many investors consider today’s prices a bargain, and this makes precious metals a wonderful alternative to placing money in stagnant savings accounts or low-yielding bonds.
National central banks bought over 533 tons of Gold in 2012 – the most in nearly 50 years. Even governments such as Russia, Ukraine and Turkey are taking on more gold. The demand for precious metals has been rising on behalf of nations, investors and numerous industries that use metals in their day-to-day operations.
As the supply decreases and demand increases for precious metals, the value continues to rise over time. These metals continue to be sought after for use in a myriad of applications, and the future is looking very bright for those invested in these resources.
Types of Precious Metals
The metals generally referred to as precious metal investments are palladium, platinum, silver and gold. Each has its own unique benefits and can be purchased for physical possession or placed in a self-directed IRA. A quick background on each:
Since the beginning of recorded history, gold has always been a sought after material of wealth. Gold isn’t only used for aesthetically pleasing purposes like jewelry and art, but it is malleable, corrosion resistant, and conductive of electricity. It’s no wonder that gold continues to be a preferred source of wealth among so many.
Is Gold a Good Long Term Investment?
With so much uncertainty surrounding the global economy and the dollar’s decline, a long-term investment in gold can offer several advantages.
“I would think people who are in it for the long term, it looks to me like this would be a very good time to buy…I look at gold as insurance, and others might be just at a time where they can start buying their insurance against the dollar fiasco, and I would say this is a good time as any”
– Former Congressman Ron Paul
Silver has also been used for generations in jewelry, art, and numerous other applications. Its electrical conductivity, heat, malleability and unique luster have made it practical for a wide variety of industrial uses.
Platinum and Palladium
Platinum and palladium are rare precious metals and have similar uses as Gold and Silver. They are known for heavy usage in industrial processes, as well as the manufacturing for jewelry and other items.