There’s a broad array of ways to invest. Among the best? Investing in precious metals such as gold and silver.
The discovery and use of gold dates back to a burial site in Varna, Bulgaria in 4000 BC, and by 3600 BC, the Egyptian goldsmiths began melting the ores in pursuit of separating the metals. The mining of silver commenced in 3000BC in Turkey, and due to its ductility nature and antibacterial properties, people started using it to make jewelry, ornaments, eating utensils and other valuable products.
At around 600 BC, Gold and Silver became the de facto money and was used by the Lydian people who were the first to come up with shops in permanent areas. For over 2500 years now, these valuable metals have proven to be the ultimate of monies. Both are now available in the form of bullion coins and bars, and you can access them from both private and government mints located all over the world. Their prices keep on varying, but the current rate of one ounce of gold is at around $1,316.40 and that of silver at $15.66.
Here are 5 reasons why investing in precious metals is a smart idea.
01. Increased control over your wealth
By investing in gold and silver, you gain a feeling of having your valuable assets under your control. These metals are portable, and beefing up their security is quite easy. The gold or silver bullion is compact and convenient when it comes to storing it. You can choose to store them in a bullion storage facility like the Perth Mint, or even offshore for heightened security.
02. Protection from currency devaluation
In the event of currency devaluation, the most probable effect is a flood of money on the market. When the currency (say dollars) in circulation increases, the amount of money you require purchasing a particular precious metal also increases. But no matter how bad the currency does with regards to the exchange rates, the value of your metal stays protected. This means that if you own gold and silver bullion, which are currently some of the most precious metals, their value remains uncompromising. Countries like the United States tend to be safe from currency devaluation, but it’s always safe to stay prepared for such situations.
03. Protection against economic crisis
At times, the stocks and bonds market can stagnate, or worse crash. As a result, business owners start closing down, commodity prices skyrocket, and the economic downturn causes the value of currency to deteriorate. The advantageous bit of owning gold and silver is that the value remains stable regardless of the degree in economic crisis.
An economic crisis can trigger a banking crisis or vice versa. When a banking crisis hits your country, the high chances are that the government will freeze your cash in the bank. Fortunately, the government cannot touch your precious metals, thus leaving them to be your last and most profitable resort.
04. Liquidity
Among the many investments, precious metals are the most form that can give you quick money within the minimum time possible. If you own gold or silver metals, and you require money urgently, all you need is to know their current bid and ask price, get hold of the metal and continue with the process of selling it. In fact, the liquidity nature of these physical metals is one of the reasons people from all walks of the world value them more than even paper cash.
05. Gold goes up while other investments go down
As the dollar and the stock markets fall, the value of gold goes in the opposite direction. At the beginning of a stock crash, all the investments go down, but gold appreciates swift and immediate the initial shock is over. Interestingly, its value may be even greater than before the crash occurred.
When you invest your dollars in gold and silver, you boost your financial situation in the sense that you transfer your wealth into a more stable form of currency. Even if the dollar goes up or down, the value of your silver or gold remains steady. Most importantly, the value of these metals keeps on growing, meaning that your investment continues to get sweeter day by day.
Final Thought
When it comes to having a safety net — gold, silver and any other precious metal are some of the most indestructible forms of currency for the exchange of goods and services. Taking the time to absorb the history of precious metals is also valuable in of itself.
