If you’ve browsed the internet at any point in the past few months, you have probably seen the advertisements for investing in precious metals. Gold seems to be the big craze right now in particular. It made me start to ask myself the question, is it really worth it, though?
I write this article today to tell you the results of my research. I’ve compiled a list for you of some of the top reasons why it’s worth getting into the precious metals industry, in particular silver and gold. If that sounds like something that interests you, be sure to keep reading!
- Gold, Silver, and the History of Humanity
I want you to think of an ancient society right now. You can choose any of them – they all work for the purpose of this exercise. What do you see?
Perhaps large buildings, castles, or even pyramids in South America or Egypt. Jewelry or other finery, too? Sparkling coins passed through aging palms?
You’re probably right in whatever you pictured. Many groups of people all over the world used precious metals as a display of wealth and providence. There is a lot of evidence of this, like you can see in this article, that demonstrates just how important these metals have been throughout the centuries.
It’s been more than just for display, though. Some weapons were forged out of silver or silver alloys. Currencies were made of both, with gold usually being more valuable. Even some paints were made using them to strengthen the pigments.
- It’s Easily Accessible
This one might surprise you, but it is quite easy to purchase precious metals, particularly of the physical variety. They still come in many coins out there like the American Eagle or the Canadian Maple Leaf. Additionally, you can get the bars, often called bullion, in a variety of sizes.
Some people worry about there being a supply shortage, but that’s really not a legitimate reason to be concerned either. These metals are abundant, and we mine a lot of them each year. You can go to pretty much any broker or online retailer and be able to purchase whatever amount you want.
- Inflation Doesn’t Affect it
Given all that’s been going on in the world, this is something I would like to highlight in particular. It’s far from a secret that the levels of inflation, especially in the United States, are rising in an astronomical amount. This means that many of us are looking for methods to defend ourselves against the devaluation of our paper currency.
Precious metals are one way to do this. You see, while the prices for something like gold do fluctuate, they aren’t in response to this economic factor. Rather, they happen on a small basis each day because of other things like supply and demand. You could visit Investing In Gold to get a few more details on how this works.
A final note I’ll make in this section is that you can sell your gold or silver during times of high inflation for higher rates because a lot of people will be scrambling to purchase more of it. With higher demand comes more profits! Watch the market trends carefully to choose a good time to sell.
- They are Used in So Many Things, They’re Practically Universal
If you are already aware of how many items that gold and silver are used in, you might find that in fact you don’t know the half of it. I’ll start with the obvious: jewelry. Both are highly sought after for use in the creation of jewelry, particularly earrings, rings, necklaces, and bracelets. I can’t imagine most wedding rings without a band made of them!
However, there are plenty of other applications as well. Electronics is a huge part of this industry, even if we don’t realize it. Of course, metals are used to make batteries. In addition to that, they are often integral parts of motherboards, circuitry, and even connection ports.
Another more decorative purpose is in silverware (I mean, just look at the name). There is also purpose in automobile manufacturing and even in the medical world. Solar panels often have some precious metals in them as well. Clearly, the demand for them isn’t going anywhere.
This means they’re a secure choice for investment. You don’t even have to buy the bullion to get involved in the industry. If you purchase stocks in companies that work in any of those markets I listed above, it’s a form of investing in precious metals.
- They’re Easy to Liquidate
This is the final thing I’ll discuss with you today. I know my main hesitance when I was first starting to investigate this topic was how I could make money from getting silver or gold. It seems like it’s just a lot of spending with not much earning, considering how expensive it can be to open some of the accounts.
However, when you have them in your portfolio, you won’t be disappointed in the ease of liquidating them. Most brokers will buy back, for example. You could utilize online retail websites as well to sell to other investors.
You’ll be hard pressed to find an instance where you don’t have a lot of eager people interested in buying from you. Thankfully, you can usually get a good price, too.
I know there’s a lot of skepticism surrounding investing in something like silver and gold. Precious metals are touted by so many companies right now, it’s hard to determine if they’re telling the truth or not. Take it from me, it’s worth getting into this market.
The benefits I listed above are just five. There are plenty more, too. For example, there is the fact that they are a low-risk form of investing. This means you are likely to see higher returns than the money that you spent.
So, if you’ve been considering it, there’s no reason not to go through with it!