Silver, gold, platinum, and other precious metals have been a popular investment for many years now. They’re prized items that investors should have in their investment portfolio.
If you’re still doubting, here are reasons why precious metals should be part of your portfolio:
1. Tangible Asset
Investing in precious metals isn’t that quite hard as most people think. One of the simplest forms of investing in precious metals is to buy them in their physical conditions. Many articles can attest to the benefits of holding precious physical metals in your hand, like this guide.
Unlike other types of investments, which are digital in form, precious metals can be tangible assets. Its advantage is that you can’t wipe or erase them away from digital assets, like credit cards, computerized bank accounts, and the like.
Also, tangible assets are free from online hackers because they can’t remove the existence of Sovereign silver coins in your pocket or vault. Although tangible assets may vanish when stolen, you can prevent this by storing them in trusted third-party storage companies or banks.
Moreover, silver and gold, which can be purchased at Oxford Gold, aren’t destructible by water or fire, unlike paper money.
2. Inflation Proof
One of the best reasons why many choose to invest in precious metals is because it’s inflation-proof. Prices of silver and gold don’t depend on whether one’s country’s currency value increases or decreases.
Precious metals are known to perform well even during economic depression and devastation. Unlike other assets that depreciate as times pass, silver and gold either retain or appreciate their value.
Even when there’s a world crisis, precious metals fares better than most investment types. Especially during this coronavirus pandemic, investors turn some of their assets to precious metals to protect their finances’ depreciation.
3. Extremely Liquid
Most importantly, precious metals are known for their liquidity, especially gold. This means they’re easy to sell or buy.
Others treat them as a hedge and currency, while some as commodities, precious metals have better liquidity than most investments. That’s why there are high daily volumes of precious metals being traded in the market. Even individuals with small investment capital can participate in the market, starting by buying coins and bars. Also, their prices are transparent throughout the day.
4. Global Acceptance
What’s even better with precious metals is the fact that they’re globally accepted as forms of payment if need be. If you own precious metals, their values are high as times pass wherever you are in the world.
Also, some countries don’t accept paper money, especially if they’re unfamiliar with the currency. But if you pay them with precious metals, such as gold or silver, they’re more likely to accept it.
Whether in physical or other forms, owning precious metals allows you to safeguard your assets from inflation or crisis. Since most precious metals, like gold or silver, are becoming more valuable as time pass, you can turn some of your financial assets into such investments.
Thus, you can grow more of your money instead of them staying as paper currencies.
Moreover, you can use precious metals worldwide because they’re accepted as a form of commodity.