What is a Bull Market?
In terms of the stock market, a bull market is one that shows investor confidence and rising stock prices and shares. The market is normally considered a bull market if there is a “rise in value of over 20%. The huge rise of the Dow and NASDAQ during the tech boom is a good example of a bull market.” (Money Instructor) Bull markets give confidence to investors to buy market shares in hopes of growing their investment portfolio. It may be difficult to predict when a market will be a bull market, or when a bull market will end, but there are safe investments to protect against any market uncertainty. These investments work as a hedge of protection against unforeseen stock market fluctuations.
Because the stock market is a sometimes volatile and unpredictable financial arena, there is one investment that is safe to make when or if the bull market evens out. Precious Metals provide an investment opportunity that is stable even during a stock bull market. The rising market prices and the price of Precious Metals are not mutually exclusive. Gold prices and Silver prices have traditionally remained stable even in times when the stock market was at a low point.
The Bull Market and Precious Metals
Investors can track the spot price of Precious Metals throughout time and see how it relates to stock bull markets. Even though investments in the stock market are not linked to the investments in Precious Metals, putting money in the right vehicle will provide a proper return on investment and good diversification of your finances. Precious Metals prices move independently of the stock market, which provides a sense of security for your investment portfolio. Investors can look toward Precious Metals even if they have money tied into the stock market.
Stock markets can drastically dip any given day because there is more financial fluidity in the markets with stocks. Some factors that affect the price of the stock market are: world events, inflation or interest rates, hype and exchange rates. (Small Business)
There is no way to predict just how long a bull market will continue, though according to Matt Wren as quoted by Matt Egan of CNN Money, “We think this cyclical bull market has more room to run and expect a good (not great) return for the stock market in 2016.”
Investing in Precious Metals during a bull market is a way to diversify your investor portfolio. Whether the bull market continues on its path of being a bull market, or plummets to a bear market, investors still have a safe avenue with Precious Metals. There are several Precious Metals products available for investors to diversify with.
What Precious Metals Can I Invest In?
At APMEX, there is a grand selection of Precious Metals products that make great investments. We carry everything from Silver rounds and Silver bars to Gold coins and Gold bars. There is also a selection of Platinum and Palladium coins, bars or rounds.