Investors taking a hard look at their portfolios may want to consider buying gold, silver or other precious metals to round out their assets.
Investing in metals can increase long term stability and add value to the savvy investor's portfolio.
Consider these reasons for buying gold, silver or other precious metals: 1.
To round out your investment portfolio.
As an investor, you may have stocks, bonds, mutual funds, or property, but precious metals are another asset to include in your portfolio.
Many investors recommend diversifying funds into multiple vehicles for the best returns.
As recent economic turmoil has shown; stock, bond, and other commodities can have their value disappear, but gold will never go to zero.
The S&P 500 is virtually flat over the last decade, while gold has gained 300% since 2000.
By purchasing gold, silver or other metals you add another valuable hedge to your investments.
2.
To enhance your long term investments.
The value of precious metals has been shown to grow gradually over time.
Buying gold or silver now can reap financial rewards in the long term despite shifting currency values and stock prices.
Both gold and silver have been consistent over time and have risen in value.
3.
To manage uncertainty and volatility in the market.
With the recent volatility in the stock markets, many investors have lost money and remain uncertain about where to invest.
Buying gold or silver can help manage these fluctuations by providing a long term, growth asset.
For example, gold was up by $30 when the Dow Jones fell by nearly 1000 points on May 6th.
4.
To have an investment asset that can be liquidated when needed.
While other investments can be sold when you need cash, perhaps nothing is more liquid and beneficial in price than precious metals.
Gold or silver purchases can be held for long term or they can be sold when necessary using an easy online service, or broker.
5.
To hold a tangible non-currency dependent asset.
The dollar is no longer tied to gold, removing some of the security of its value and increasing currency fluctuations.
Historically, when the dollar rose gold and other medals tied to the dollar declined.
That is no longer the case, thus while the dollar can fluctuate dramatically on the world markets gold continues to remain a tangible asset.
Gold and silver have continued to increase in value even as the dollar has also risen against other currencies.