Gold and silver have been prized commodities for thousands of years. With their reputation and value, many people have wondered about adding them to their financial portfolio. This can come up more during financial crises and events that cause fear in the market.
It isn’t hard to see why: between 2005 and 2020, gold’s price increased by 330% in comparison to 153% by the Dow Jones Industrial Average (DJIA). While that price increase sounds promising, it’s important to know which is the best way to buy.
If you want to learn about why you should buy gold and silver and add them to your financial portfolio, keep on reading.
Value Grows Over the Long Term
Unlike paper or digital forms of money, gold and silver do not depreciate in value, nor does it disappear into thin air. Since people covet ownership of gold and silver, they have intrinsic value that makes it desirable to own, little credit risk, and no chance of inflation.
In a way, they can act as a type of financial insurance and be traded at any time when there is a period of a political, financial, or military crisis affecting the stock market.
They Diversify Your Portfolio
Anyone interested in investing their money should always have an interest in diversifying their portfolio.
Current gold and silver prices are often frequently traded around the clock across the world. At the same time, they are not highly correlated with stocks, bonds, or real estate. Because of this, they can be a safety net in your portfolio.
In addition, higher demand for metals in industries such as technology and jewelry-making and countries like India can lead to increased prices over a period of time matched by historical growth.
There are Many Ways to Invest
You don’t have to rely on buying an idea of metals that are stored in an undisclosed location until you need them. In fact, there are many ways to invest in gold and silver that you may not even know about.
Some of the easiest ways to invest in gold and silver include buying physical bullion bars and coins. Buying these gives you physical proof of ownership and items to place in a safe or safety deposit box.
Another easy way to invest is by placing money in an exchange traded fund (ETF). What this does is help give you a liquid simple way to buy gold or silver. Keep in mind though that buying through an ETF does not give you full ownership of the metal you want to invest in.
Invest in Gold and Silver Today
When thinking about new ways to invest in a commodity and expanding your portfolio, it is good to take a look at gold and silver prices and determine whether if it is good to buy. When considering them for your financial future, consider their benefits risks. When you are ready to invest, make sure it is the right move for you.
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