Precious metals have always been valuable in global economic indicators throughout history. Gold and silver, as well as platinum and palladium, were the main currencies in ancient markets thousands of years ago. Forms of currencies evolved though time but even then, they were still backed by precious metals. In the United States, for instance, the monetary system was based on gold until the early 20th century.
After the last gold rush of the 1970s, new forms of investment rose to fame, and attention toward precious metals started to dwindle. If you ask a common modern man now, buying gold and silver may seem like an alien concept. However, these precious metals actually remain as two of the most valuable assets you can invest in. The Oxford Gold Club is a great starting point if you’re a first-time buyer, collector, or investor. You can convert your existing retirement savings into precious metals or own gold and silver outside of your funds. If you’re ready to diversify your investment portfolio, here are the top three reasons why you should opt for gold and silver.
Inflation diminishes the purchasing power of money. Precious metals are a proven hedge against inflation because they tend to keep their value even if the national currency or online currency exchange becomes weak. This is especially true for gold coins and bars, which became extremely in-demand during the economic recession of the 1930s and once gain in 2008.
Both gold and silver have universal intrinsic value, which means people will find them valuable regardless of time, place, or general economic situation. Unlike other physical assets, they never depreciate or become obsolete. This fact shows that they can provide stability and financial protection even during an economic depression.
High Demand, Low Supply
Since gold and silver are ‘precious’ or ‘rare’ metals, they have a much more limited supply compared to other metals such as aluminum ETFs or copper. One contributing factor to this is the decline of the mining industry due to environmental issues and safety risks. Still, gold and silver remain in-demand in many industries, especially in fashion and electronics where they’re mostly used.
Considering the growing demand versus the low inventory, it’s a smart move to invest in gold and silver now while the prices are still relatively manageable. Precious metals are historically prone to price spikes due to extreme scarcity, especially during worldwide crises. Preserving or keeping them in storage will also be beneficial since their value tends to increase over time.
Physical And Private
One of the best attributes of precious metals is that they’re tangible assets. You can touch, hold, and feel them. That’s quite literally power in your hands. Unlike digital investments such as bonds or stocks, physical possessions aren’t prone to manipulation, deletion, or hacking. You won’t ever have to worry about investment scams, fraudulent online transactions, and stock market crashes.
Moreover, tangible assets can afford you a high level of investment privacy. You might want to keep your assets hidden from the public, and it’s possible with precious metals. Once they’re in your possession, you can store and manage them on your own. There’s no need for a third-party financial small business consultant or institution that controls access to your funds.
Finding Stability In Unstable Times
The world today is highly unstable. With a pandemic in place and political unrest happening across the globe, you have to be smart and invest in assets that can protect you in the long run. Gold and silver are the perfect answer to this. They can secure your wealth with much more convenience and lower risks than other forms of investment.