The How’s and Why’s of Investing in Precious Metals

Precious metals, like gold, are a preferred investment for a diversified portfolio. Exactly how much precious metal should occupy a portfolio is debatable, but there’s no question that some exposure to precious metal investments is a must for any portfolio diversification. However, the questions like why invest in gold and silver, and what form that investment takes, is something that needs to be carefully considered.

The first question that people have is why precious metals. The first benefit when purchasing gold investment positions is its value. While popular precious metals like gold and silver are down in value as of late, each of these metals are poised for significant growth. From a value standpoint alone, a small investment in precious metals could add a ton of value for a portfolio.

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In addition to value, precious metals offer a hedge of protection against market volatility. With most of the investment market trades being based on paper money, the value of the money, and the stability of the governments that prop up that money, can fluctuate. Should a currency experience trouble, this could significantly lower the value of a portfolio. However, with a healthy amount of precious metal investments, any losses could be canceled out and, in some cases, a portfolio can even gain in value with gold investments that aren’t tied to paper money or the stability of a government, regardless of how volatile the market is.

The great thing is that there are plenty of investments that virtually anyone can make when precious metals are concerned. Small investments in gold coins or silver investments are perfect for people with limited investment capital. Gold or silver bullion, collectible coins and even jewelry are also excellent investments for people with more discretionary income. Also, self-directed gold IRAs are another way that anyone with investment capital can benefit from gold or silver investments.

As you can see, precious metal investing is important. In addition, there are many different ways that you, regardless of your available capital, can begin investing in precious metals like gold and silver. If you’re looking for some stability in your portfolio, looking for added value or diversification, it may be time to seriously consider precious metal investments.


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