Why Buy Physical Gold and Silver?
When you buy Precious Metals, you are investing in products that transcend the sometimes-volatile market. Precious Metals can play an important role in a modern portfolio, as they hedge against the uncertainty investors find with stocks and bonds.
Because the global supply is relatively finite, Gold’s purchasing power has historically remained stable during inflationary times. Additionally, Silver was the first metal used as currency more than 4,000 years ago when Silver ingots were used in trading and is still commonly used for many industrial purposes.
An ounce of Gold and Silver has the same value anywhere in the world, which makes trading Precious Metals simple and easy.
Some coins stay in families for generations. Precious Metals can be a means of passing tangible wealth onto future generations.
Generally, Precious Metals prices aren’t tied to stocks and bonds. Their low correlation to other assets provides that much-needed balance in any portfolio.
Market timing is difficult for any investment. That is one reason many investors look beyond day-to-day price movements and buy physical Gold or Silver as long-term investments. When planning to hold an asset like Gold for 3-5 years or more, it is less important to consider the current cost of the Precious Metal and more important to examine its historical performance in relation to other investments.
INVESTING IN GOLD AND SILVER
Gold and Silver’s relative purchasing power tends to remain stable during periods of inflation. For example, in 1985, the cost of an ounce of Gold was about the cost of a nice men’s suit. Allowing for some peaks and valleys in the market, today, one ounce of Gold still costs about the same as a nice men’s suit, even though the price in dollars has nearly quadrupled. In 1985, the cost of an ounce of Silver would just about buy two movie tickets. Allowing for some peaks and valleys in the market, today, one ounce of Silver costs slightly less than a pair of movie tickets while the price in dollars has tripled. Gold and Silver prices do fluctuate, but they generally move independently of the stock market. In an economic slowdown, your Precious Metals may provide a comforting, stable point among your investments.
HOW TO BUY PHYSICAL GOLD AND SILVER
Now that you understand why buying Precious Metals is a good investment, you may need guidance on how to buy Gold or Silver. Luckily, buying Precious Metals is simple. Common first purchase is the Gold American Eagle, one of the most popular Gold bullion items with investors, or you may choose a beautiful 1922 Silver Dollar. The possibilities of different bullion bars, rounds or coins are endless.
Whether you are making a long-term investment or simply admire the beauty of Gold or Silver, APMEX provides the tools to help you make the best choice for your portfolio.
APMEX recommends discussing the pros and cons of investing with a financial adviser or professional.