First of all, let’s understand that different investments have advantages and disadvantages, and that the choices we make always adapt to our personal circumstances, which cover many variables. Some of these variables include: investment objectives; the time to reach your goals; your risk comfort; the value of your existing funds; your unique tax results; your potential need for liquidity; and more. Here are a few things that will lead each of us to make our own decisions for specific situations. Please note that I do not make any investment recommendations, especially for the work I mentioned above (I am not a tax, law or investment expert, I do not know anything about you or your specific terms). Let’s see how gold and silver fit this picture.
Why do you ask for gold and silver?
The answer is that there is room for almost everyone in his portfolio. Let’s look at the reasons.
Both gold and silver are universal. In other words, local currencies maintain their values all over the world, regardless of what they do or where local economies live. Gold and silver are world currencies and have been the basis of our planet for thousands of years.
Some of the many goals people set for themselves are to accumulate wealth, while others invest to maintain or preserve wealth. I believe it is fair to say that most people invest either to build a financial future or to protect their material future. Because gold and silver are precious metals, they have the ability to retain their innate value, and this is ideal for the protection of wealth. This makes it ideal to take down one percent of your investment dollars and protect those dollars by having a physical bar. By doing so, you also build your wealth.
It is true that there are risky investments that can bring you higher returns, but it is important to note that they are also more likely to bring you big losses. There is a place for high-risk investments (for some people), but if you do something there, make sure you know what you are doing and be different to reduce that risk. Still, gold and silver are the perfect place for a low-risk investment, based on the fact that they will always be valued by nature.
Another important point is its connection with the economy and changing economic conditions. Different economies are moving downwards all over the world. These changes cause any investment to slip bare. These changes lead to inflation and even deflation in world currencies. Both gold and silver values vary, but keep in mind this interesting fact: today you can get the same amount of milk as an ounce of gold as you could get thirty years ago. How about this stability! Don’t be fooled by small price fluctuations … it’s important to understand that both gold and (especially) silver play an important role in commercial use, and that these demands are having a daily effect.
So why is gold and silver a smart investment now?
In short, the answer is uncertainty. There is a great concern in the world. We have terrorist threats abroad and at home. As China and other growing nations grow, we are changing our world trade and power. We have a growing threat from North Korea. We have a US president that some citizens think is exactly what we need, while other presidents are horrified at the prospect of a presidency. Whatever the case, uncertainty is a good reason to have the stability of silver and gold in your portfolio.
An additional reason to invest is the near-term prospect that some people are considering for our currency to penetrate. People preparing for disaster are collecting gold and silver because in such a scenario they can use it as a currency to trade for what they need.
What do you think, precious metals can be a great addition to your portfolio or a great way to start your portfolio. Make sure you learn how to buy the right way and do it with confidence!