Kyle Jernigan - July 12, 2021
7 Reasons to Invest in Precious Metals
Various fractional Silver pieces.
Precious metals are prized investments the world over. As of 2021, 12% of Americans own gold, while 14.7% have made investments in silver.
Why do these age-old commodities still have value in the financial world today? The answer is simple. To invest in precious metals is to have a recession-proof, steady yielding, and high appreciating investment. Whether you opt for gold, silver, platinum, or palladium, investing in precious metals is the perfect asset to any financial portfolio.
Should you invest in precious metals? Here are 7 reasons precious metals are a foolproof investment.
1. Precious Metals Are Inflation-Proof
Pretty much any investment out there is subject to inflation. Bonds, stocks, and property all fluctuate in market value. In contrast, precious metals are one of the most stable investment options out there. This is critical as it means your investment will remain stable irrespective of financial uncertainty.
A historical trajectory of precious metals like gold and silver shows that not only are precious metals inflation-proof, they also withstand economic devastations or depressions.
This is because metals were a form of currency much before the US dollar or other currencies. For example, gold has existed as a monetizable commodity for over 3000 years. It constantly increases in value with the market rate, and rarely is it seen to depreciate.
The enduring value of gold and other precious metals is why many banks are buying into this investment and expanding their reserves.
50 oz Silver Bar.
2. Precious Metals Are Tangible
While investing in stocks or bonds can teach you a great deal about financial investment, only precious metals bring peace of mind and relief. This is because metals are tangible - they are a reliable commodity.
You get to keep your gold safe however you wish. This freedom of owning gold is unparalleled. Gold can never be hacked into, tapped into, or taken advantage of. This is unlike cryptocurrencies and stocks, which live on a web server or real estate, which can be furloughed or seized.
There are increasingly secure and technological ways to store your gold. Definitely take advantage of this, as this means your gold will be protected for as long as you need.
3. Demand Is Increasing
The precious metal market has taken a spike recently. This is because metals are not a common commodity, i.e., they are not abundant in nature. Thus, as resources are reducing for metals the world over, the demand is increasing.
Many countries like India and China hold precious metals as part of their culture and lifestyle. Investing in gold is a common tradition in India, so much so that it is estimated that more gold is held in wealthy Indian households than all the banks in the world!
This indicates that there is a steady increase and demand for metals. Be sure to invest in precious metals while they are still available. This way, you will have access to a high valued investment with great profit margins because you bought in when it was relatively cheaper.
Stack of Gold 1/2 ounce Gold Coins in protective acrylic coin capsules.
4. Invest in Precious Metals to Diversify Your Portfolio
Many investors will have their hands in a bunch of pots simultaneously. Since other investments like cryptocurrency or stocks may be volatile, it is important to keep a safety net just in case something happens.
Investing in precious metals is ideal for those that enter into risky deals but want some respite. It will ensure stability and steady increases. If you do make some losses in other financial scenarios, you'll have precious metals to bring more profit to even out net losses.
5. Precious Metals Have a High Liquidity Rate
Many investors are drawn to investing in precious metals because of the liquidation rate. Metals are greatly valued, so it is relatively easier to convert them to cash. Also important to note is that you'll be able to get cash for your gold everywhere in the world, as it is a globally valued commodity.
Compare this to investing in the stock market, for example. You never know if you'll receive the right cash value, as it is so dependent on external circumstances.
With precious metals, however, you will get the right value upfront in cash. There is very little chance of it depreciating or losing value due to changing financial circumstances.
6. Precious Metals Are Easily Purchasable
Wondering how to invest in precious metals? It is a straightforward process as they easily purchased from banks, market dealers, and bullion traders.
This makes it an accessible commodity, as it completely cuts out the need for a middle man. You also don't lose commission fees as you can head directly to a seller.
If you're wondering which is the best precious metal to invest in, that is entirely dependant on your budget. Gold is usually significantly more expensive, while silver provides reliable and affordable investment.
7. Essential Use
Precious metals are found in innumerable everyday products, such as cars, phones, jewelry, and batteries. They also have applications in the medical field and are used by manufacturers worldwide for various purposes.
This makes precious metals indispensable commodities. You can make use of this resting assured that your investment would never go out of use or bankrupt. Many families will also melt metals to create family heirlooms for personal purposes. The essential nature of metals means that there are many ways to use them, rendering them invaluable.
You Can Never Go Wrong Investing in Precious Metals
Remember, precious metals are an evergreen investment. They will hold true for centuries down the line and are a worthy investment. Not only will precious metals like gold, silver, and platinum stay steady in the face of financial uncertainties, they are also accessible and safe to own.
Interested in learning more about how precious metals provide the ideal safety net for investors? At Investor Crate, we have all the information you could need without any fees, obligations, or contracts!
Be sure to check out our blog to learn more about how to invest in precious metals, as well as other financial information.