As with any investments out there, investing in gold and silver, or both, carries both pros and cons. If you’re looking to broaden your investment portfolio, we are taking into consideration investing in gold or silver, whether you’re looking into investing in a gold bar, silver coins, and bullion, read on to find out more information.
Investing in Silver
Silver is largely seen as a safety net, although it can be volatile. Silver is a safe asset, giving investors large amount of protection in times of economic uncertainty. Silver, much like gold, retains its value when economic climates dip. Large amounts of countries across the globe are now investing in the precious metal commodity over the last year since the beginning of the pandemic, as a way of ensuring some more financial stability.
As previously mentioned, in times of economic uncertainty, investors tend to purchase precious metals for added financial protection.
Less Expensive than Gold
Being less expensive to invest, silver is more accessible than gold, and versatile. If you’re looking to invest in silver in the form of currency, it will be easier to liquidate due to the lower value.
While stocks, index funds, bonds, and other investments are additional forms of finances and wealth, they are still digital promissory notes. This means, they are more likely to be affected by depreciation due to printing money and various other economical changes. Silver, however, struggles to depreciate as it is unlikely to completely crash, silver has always, and will always carry a universal value.
Investing in Gold
Gold is highly liquid, highly sought after, and extremely scarce. The World Gold Council have stated that investment demand for gold has grown 18% per annum, on average across the globe. Owning gold bullion is lucrative in times of economic downturn, with investors putting traditional forms of banking on the back burner due to lack of trust in the way their money is handled.
Gold, be it coins, or a gold bar has a hedge against inflation rates, meaning that when the economy hits an all-time low, your investment in gold bullion is safe, you’re at no risk of losing your money.
Gold is a fantastic addition to any investment portfolio. In the form of gold coins, or a gold bar, it’s easy to buy and sell, as well as having the satisfaction and financial protection of possessing gold. When looking to expand your investment portfolio, always do your research and get in touch with reputable bullion brokers.
On average, the price of gold has increased by 10% per annum since 1971. A smart investor will always make gold a consideration when expanding investments, being diverse, low in correlation to most asset classes and being a tool used for financial stability and protection. Historically, gold has improved the returns of many investment portfolios across the globe.