If you’re looking for ways to improve your financial security, you may want to consider investing in precious metals. With a long history of high demand and incredibly stable value, metals like gold and silver are a top choices for low risk investments.
Whether you purchase in coins, bars, or other forms of gold or silver bullion, precious metals provide a stable means of laying out funds for your future.
Here are our top three reasons why you may want to consider them as part of your long-term investment plan! Precious metals are a portfolio diversifier, an inflation hedge, and a low-maintenance investment. Read on to find out more about the benefits they can offer you!
1. Portfolio Diversification
Your investment portfolio is comprised of a collection of diverse assets. One of the most important things you can do to develop a strong portfolio is to maintain a harmony of variety. To do this, you’ll need investments that support each other’s strengths and weaknesses.
Precious metals are one of the most useful and effective means of portfolio diversification, as they can accommodate many other types of holdings. In particular, combining bonds and stocks with gold works well to reduce the volatility and risk of your collection of shares!
2. Hedge Against Inflation
Precious metals, especially gold and silver, have a long history of high value and constant demand. They’ve been used for financial security for thousands of years and won’t be loosing their value any time soon.
Because of their intrinsic value, precious metals offer a tangible hedge against inflation and other forms of economic downfall.
They have no credit risk, cannot be printed, and are only available in limited quantities. Their rarity and worth provides financial protection against inflation, deflation, and the overall weakness of modern currencies.
3. Low Maintenance Investment
On top of the financial benefits offered by precious metals, gold and silver are a low maintenance investment choice! Unlike shares and stocks, that can fluctuate wildly within the hour, precious metals tend to have an even value.
Often called “crisis commodities,” they tend to rise in value in times of financial and political uncertainty, and lower in value when public confidence is high. Because the prices of gold and silver are affected mostly by political and economical upheaval, the rise and fall of their prices is generally slow and predictable.
In addition, they offer high value at a compact size. Small and reasonably lightweight, storing your portfolio in a safe or even traveling with it is relatively simple as well.
The Bottom Line
From the viewpoint of investment theory, even a small percentage of gold and silver in your shareholdings reduces the volatility of your assets and balances your portfolio. It’s one of the most trustworthy, steady, and straightforward investments you can pursue and a forward-thinking way to preserve and increase your funds!