5 Reasons to Invest in Precious Metals

Ask any seasoned stock market trader for the keys to a successful investment; and they’ll likely provide you with some variation of the following qualities.

  • A conservative valuation that still guarantees an expected rate of return
  • A trading price that approaches the asset’s intrinsic value
  • Minimum related expenses
  • The opportunity for profit.

In a world where fluctuating currency values and volatile markets are common finding an investment that provides all of these qualities can seem like almost impossible for those of us without any specific financial knowledge. Which is why it’s such a surprise that financial advisers continue to ignore the potential offered by precious metals; even as central banks around the world continue to invest in gold, silver and similar commodities.

If you’re pondering an investment in gold bullion or some other form of precious metal , here are the benefits you stand to gain.

Protect Your Wealth against Geopolitical & Economic Uncertainty

The 2008 recession, and the Eurozone crisis which followed in 2010-11 only reiterated how fragile the strength of even the strongest market can be. Now, with oil prices sinking and other conflicts building across the globe, it’s more important than ever before to have safety nets in place in case of another financial disaster.

Precious metals are a long-term investment, and they have held their value for over 3000 years. There’s no better barometer of their stability than the fact that precious metal prices always rise after a market crash as investors look to purchase some much needed security.

Easy to Liquidate

Gold is great to hold as a long term asset, but if you’re faced with dire financial circumstances or you just need to turnaround some quick cash then there are few assets that will sell more quickly, and easily than precious metals. They are a mainstay in various manufacturing processes, and as technology advances, their importance to construction only looks set to increase.

Tangible Assets

Unlike buying shares in a public company, buying gold bullion from websites like Gold Bullion Australia means purchasing an asset that you can actually hold in your hand. You don’t need to monitor it carefully to ensure its condition, you don’t need to maintain it, or worry about it being hacked like a cryptocurrency. You can just store it in a vault, and be safe in the knowledge that no computer or document can erase your investment.

No Specialty Knowledge

As with any investment there are optimal ways of buying and selling your asset, but the best part about gold is that you need no prior knowledge to start purchasing. You’re not speculating on future mergers or reorganizations, or the promise of strong quarterly operating profits, nor do you have to have any particular knowledge of mining, or metal composition. You’re buying a straightforward asset with an acknowledged value.

Diversified Portfolio

Diversification is one of the first rules of investing; it’s the best way to protect yourself against market, and systematic risk. When financial advisers speak about keeping a percentage of your capital in low-risk investments, there are few safer options than precious metals.

Posted in: Investments