While the stock markets floundered in 2020, the price of gold soared to $2,000 an ounce. Why are precious metals such lucrative investments?
Why are they considered to be safer investments than stocks and shares?
This article will break down the top five reasons you should invest in gold or silver.
Precious Metals Can’t be Hacked
Because gold and silver are tangible assets that you can hold in your hand, they can’t be hacked in the same way digital investments can. When investing in precious metals, your money can’t just get deleted in a system by hackers or the government.
In times of crisis, people worry about investing in the stock market. Gold and silver don’t have this volatility. Investing in silver or gold is a very stable investment.
Gold and Silver Can Be Sold Anywhere in the World
Humans have traded gold and silver for thousands of years. These metals aren’t going to suddenly lose the value humans place on them. You can sell your gold and silver anywhere in the world at any time. They are easy to transport to anywhere in the world with you.
Unlike other investments, you don’t need to wait until the right time to sell. Gold and silver can be liquidated at any time. You also don’t need special knowledge to invest in gold and silver.
Demand is Increasing
Demand for gold and silver is always consistent. There is surging demand to buy gold and buy silver in emerging markets such as China and India. There is a high value placed on precious metals in these societies.
The demand is not going to fall anytime soon. Supply is also becoming more scarce, which will most likely make prices soar.
No Counterparty Risk
Investing in gold and silver is smart because these metals can’t go bankrupt. They won’t default on payments or back out of a contract. Unlike other investments where you rely on another party, gold and silver are reliable.
Gold, for example, will always have value. In over 3,000 years of its existence, it has never had zero value.
Invest in Gold or Silver for Confidentiality
If you by silver or buy gold, nobody needs to know you have it in your portfolio. It is one of the only investments you can make without having to give a name.
These metals are discreet investments. You can purchase gold coins or silver rounds, and nobody needs to know about it.
As the items are small, storing them isn’t much hassle either.
Long Term Investments
Are you looking to invest in something that isn’t volatile, doesn’t fluctuate with the stock market, and is always in demand? Then invest in gold or silver.
With little risk of being hacked, lost, or going bankrupt, gold and silver can be kept safely in your home until you want to sell them. Gold and silver are easy to sell should you need cash assets. You can also sell them wherever you are in the world.
If you are looking for some more lifestyle and personal finance tips, check some of the other articles on the blog.