Why Investing in Gold is a Great Idea
Desirable precious metal seems to have made quite a rather large comeback this year and for all the right reasons. There has been an impressive increase in first-time investors purchasing gold compared to 2017 and we’re not surprised people have started to return to real assets given equity markets seem to continuously break their new all-time highs.
We often hear “Should I really invest in precious metals?” – It all depends on your investment horizon. If you’re looking to invest for short-term goals, perhaps buying a house, then absolutely not. However, looking to invest for the long term and be able to create safety, comfort, and security for yourself in the next 10+ years? Then it’s a very sensible choice.
Evidently, gold is the most popular precious metal in the world with a dual purpose, which means it can be used for industrial use as well as financial investment. Many investors purchase gold hoping to realise gains from an increase in the price, but for most, they are seeking a wealth preservation tool with gold acting as a safe haven. It has the ability to protect you against financial crises which is important in the current economic climate.
Gold is easily very liquid, allowing you to move money in and out quickly. The biggest decision comes at the time of purchase when you have to decide whether it would benefit you more if you were to buy gold coins or gold bars – both have their advantages and disadvantages. We discuss this process in one of our recent articles – Gold Bars or Gold Coins: Which is Right For Me?
Silver, just like gold and platinum is still real money. Although it doesn’t carry the same value as gold, it holds long-term use and the price is expected to rise. Silver, believe it or not, is also easier to obtain because it is cheaper. One huge advantage of investing in precious metals is that you are able to possess a physical asset. The world is becoming more and more digital and while it has it’s pro’s, hacking and cybercrime does exist. We’re pretty certain no one could erase a Britannia Gold Coin from your hands. A collection of silver bars or coins would be advantageous when it comes to your pension, as they’re easily accessible. We recommend buying silver as one of the easiest options for precious metals investment.
Unlike gold, Platinum is a rare metal. Production wise there is only around 250 tons of platinum each year whereas gold production is approximately 3,200 tons per year. Many people do not tend to tap into the world of platinum as silver and gold are the most common precious metals for investment. However, Platinum is a valuable investment and has been one of the top performing asset classes in recent years. Because of the limited source of supply, it means it’s still rarer than either gold or silver and for some odd reason, it’s popularity over the two precious metals still hasn’t put it in the lead of most precious metal.
Gold You Can Hold
If you’re looking for “gold you can hold”, don’t hesitate to get in touch to enquire about purchasing precious metals.