With inflation on the rise and concerns over the economy, seniors are buying up precious metals. Historically gold and silver have been one of the most stable return investments used by hedge funds. For a safe and effective way to protect your money in these uncertain times learn more about buying precious metals safely here.
Hedge Against Inflation
With inflation hitting 7% in December 2021 and projected to continue rising it’s important to protect your wealth. Uncertainty in the markets has been on the rise with concerns over the latest bailout package, the stock market decline, and economic instability. Senior citizens are concerned need to protect themselves against a further decline in their retirement income.
One of the most popular ways to hedge against inflation is precious metals. When purchasing precious metals like gold or silver you invest in a commodity that is less volatile than stocks but more reliable than other commodities like wheat and oil.
Precious Metals Are Tangible Assets
Many people perceive gold as money because of its historical use as a form of currency and insurance against inflation. Gold in particular is seen as both a store of value and an investment asset. If you’re considering investing in precious metals it is important to know the difference between gold, which has a more industrial use, and silver, which has a more precious metal use. This way you can take advantage of two distinct markets with different advantages.
High Liquidity Assets
One of the major benefits of investing in precious metals is how easy it is to sell them back for cash. They are considered highly liquid because they can be easily sold and have a large demand. If you were to invest in stocks or bonds selling back for cash is much more difficult. In contrast to stocks and bonds, precious metals can be sold easily by a buyer almost anywhere in the world. You can sell them at a local coin shop or even through an online broker. You can also sell them back to the dealer you purchased them from if you don’t have time to wait on the paper markets.
Classed As Safe Assets
Precious metals have long been considered safe assets in economic uncertainty. Historically, in the modern era of protectionism and over-regulation, gold and silver have been the last holdouts from being classified as an investment. Investing in gold and silver has been a safe haven for many investors during turbulent financial markets. In times of uncertainty government actions such as currency devaluations or regulation changes have pushed this asset class to appear more appealing, but even then it is still considered a highly secure investment holding.
Easier Than Ever Before
It’s now easier than before to get investment into precious metals in a safe manner. There are many trusted and regulated brokers and dealers to buy precious metals from today. With accurate pricing available in global markets you can be sure to get great deals.
Gold or Silver?
Silver is considered more of a hedge against inflation but follows a more volatile market movement. For a more stable investment go with gold.
If you are thinking about diversifying your portfolio of investments precious metals like gold and silver are a great way to do it. Both of these investment types have a distinct advantage making them attractive but different in their own right. For a good mixture of long-term return and stability consider buying both gold and silver at once to diversify your portfolio.
Get Investment Advice
It is always highly recommended that you consult with a professional before making any investment decisions. For peace of mind and complete security consider investing with a trusted dealer you can speak to about your options. You can find out if your local coin shop or investment dealer is licensed by searching online for the companies registration number.
Try Gold or Silver ETFs
You can use something like the Gold ETF (GLD) to get exposure to gold without the hassle of storing physical gold.2 These are backed by reputable institutions and are highly liquid when you want to sell out of your position. Gold ETFs work by investing in a basket of shares of gold and silver. When you sell out of your position it is tracked by the stock price of your ETF.
What to Look for In A Dealer
When buying precious metals you will want to find an honest dealer who has been in business for a long time and has a proven track record. The dealer should also be licensed by the government or the agency responsible for issuing licenses in your country. In the USA the SEC is the regulatory body for investment and securities business which you can search for licenses.
Best Prices From Trusted Brokers
If you’re concerned about the future of the economy and wish to protect your wealth then precious metal is a safe choice. For centuries humankind has been storing wealth in such metals as gold and silver. To this day the top hedge fund managers and investment companies around the world hold some wealth in gold and silver. To view the best dealers available now or learn more about purchasing precious metals you can use this resource.