Silver, gold, platinum, and other precious metals have been popular investments for many years. 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 condition. Many articles like this guide can attest to the benefits of holding precious physical metals in your hand.
Unlike other types of investments, which are digital in form, precious metals can be tangible assets. Its advantage is that you can’t erase them from digital assets, like credit cards, computerized bank accounts, etc.
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, unlike paper money, silver and gold, which can be purchased at Oxford Gold, aren’t destructible by water or fire.
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 time passes, silver and gold retain or appreciate their value.
Even during 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 from 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 and precious metals with better liquidity than most investments. That’s why high daily volumes of precious metals are traded in the market. Individuals with small investment capital can participate in the market by buying coins and bars. Also, their prices are transparent throughout the day.
4. Global Acceptance
What’s even better with precious metals is 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 unfamiliar with the currency. But if you pay them with precious metals like 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, become more valuable as time passes, 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.