Why Investing in Precious Metals is a Smart Financial Move
Investors know a diverse portfolio is a potentially healthy portfolio. But that old line of thinking doesn’t merely apply to the stock market trade. In fact, investors who really want to diversify their portfolios are smart to look beyond stocks and bonds.
Why? Those roller coaster rides are fun, but they often come with inherent risk. But what is an investment that is inherently less risky? One that will always be valuable, of course.
Precious metals have been celebrated for thousands of years. So it stands to reason they will still be treasured within your lifetime.
Here are just a few reasons why investing in precious metals is a savvy move for even the greenest of investors.
The Value & Price of Gold and Silver
Have you ever heard the investment quote about stocks only ever going up? Well, that might be a bit of optimism on a trader’s POV. But with precious metals like gold, that quote actually holds water.
Take a look at the 100-year price chart for gold, if you don’t believe us. Taken as a long-term perspective, that’s a 280% increase in value over a 100-year time span.
Silver hasn’t had quite the same ride, but it’s no doubt more valuable today than it was back in 1924. It has increased in value by 65%, to be specific.
So, are precious metals a good investment? If you are looking for an investment that continues to gradually compound, investing in precious metals is it.
A Hedge Against Inflation
Inflation is a hot topic today in the U.S. And with good reason, as we are experiencing unprecedented inflation levels this generation has largely never seen.
But guess what is a great means of stabilizing your portfolio against inflation fatigue? You guessed it: physical precious metals. The cash in your wallet today is likely worth less than it was this time last year. But the precious metal you may have is likely worth more today than it was a year ago.
Not bad when even a gallon of milk feels like a stretch!
An Escape from the Ledger
Do you feel like everything you do today is tracked? Certainly that’s true with the stock trade, where every sell triggers an automatic signal to the IRS.
But what are precious metals but an inherently physical object?
For folks who don’t believe that everything you do should be captured or taxed, precious metals are a great respite. These are also assets worth holding, so you are less likely to fall victim to pitfalls like short term capital gains taxation.
Liquidity
With precious metals, the way you invest gets a little more interesting than just buying a stake in a company. It allows for different types of investments depending on your risk tolerance, preferences, and more.
Consider how you can purchase precious metals in various forms. This is a great way of achieving the easiest and honestly most satisfying form of investing in precious metals.
But did you know you can also invest in precious metal exchange traded funds (ETF)? This is essentially like betting on the entire metal trade. And it’s a great means of diversifying your portfolio further.
Don’t fall victim to just investing in a single kind of asset. With the inherent liquidity of the previous metal trade, you give yourself options for how to participate.
Countless Metals to Consider
Those who are learning how to invest in precious metals may think it’s just about gold and silver. In fact, there are countless precious metals to consider. And some hold immense value.
What is the most valuable precious metal? Well, it depends on who you ask and when you ask. Gold has historically always been coveted by nearly everyone. This is why it’s often such a stable riser in terms of value.
But look more recently and you’ll see a few newcomers to the field, including platinum and palladium. These two metals are coveted because of various factors, including:
- Scarcity
- Broad uses in industrial application (like catalytic converters)
- Market speculation
- And more
But don’t let us make you think that gold or silver are on their way out. In actuality, the market is only just realizing the inherent value in so many precious metals.
Add to Your Investment Portfolio When You Invest in Gold and Silver
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We offer fast and secure transactions, low premiums, and countless form factors to consider.
Add to your portfolio on your terms by investing in precious metals from Kzoo Bullion. View our gold bar and coin collection here.
