It is said that precious metals such as gold and silver are the safest investment anyone can make, with a lot more pros than cons even for the beginner investor. Here you can see 14 reasons why you should invest in gold and silver.
Reason 1: Insurance in case of crisis, financial meltdown or depreciation of fiat money. This is the main advantage that precious metals offer. It has been seen again and again that every time there is a finantial crisis the value of gold and silver rises. This is because while the ammount of gold and silver remains the same fiat money loses value as central banks print more and more money.
Reason 2: Precious metals are not only a protection against financial meldown and depreciation of fiat money, they are also an insurance against the depreciation of all the other investments. Stocks, bonds and real estate suffer a lot of depreciation during economic crisis while gold and silver usually perform very well through these economical lows.
Reason 3: Gold and Silver investments are not a get-rich-quick investment, but their value has always gone up since 1975. This is not the kind of investment that will make you rich overnight but will for sure be benefitial in the long run. These metals should be considered long-term assets.
Reason 4: Prices are going up. Demand is rising and supply is falling.
Reason 5: Gold mines are facing closure. With the price of gold as low as it is now it is hard for the mines to make profit, so they are on the verge of closing. With mines in the U.S., Australia and Argentina facing closure, gold will become more valuable over time as demand increases.
Reason 6: Silver mine supply is falling. The top 10 silver producing countries have started to mine less silver, which increases the value of the already existing one.
Reason 7: Silver demand is rising. Silver is a very special kind of metal with multiple uses in the industrial fields. For example every cellphone contains a third of a gram of silver, with around 3 billion phones purchased per year (and growing) it’s demand is only going to increase (roughly 15% per year).
How is silver used?
56% Industrial: electronics, batteries, solar panels, etc.
33% Jewelry, Silverware and Religious Objects.
11% Investment: coins, bars, etc.
Reason 8: India and China are demanding more precious metals. With these two massive countries developing so fast they are adding a huge amount of people to the world’s middle class group; and with these new members of the middle class we also get a lot more of gold and silver consumers. Both countries have increased their gold and silver demand by over 15% in the past 5 years. This makes gold and silver an even better investments due to the rising demand for these metals.
Reason 9: Gold and Silver are tangible products. When investing in bonds and shares we get representations of what we own. Owning gold and silver we actually have those metals with us, which gives us a certain comfort and satisfaction that others investments can’t provide. In a world of paper profits, digital trading, and currency creation, physical silver stands in contrast as one of few assets that you can carry in your pocket anywhere you go, even another country. It also can’t be hacked or erased.
Reason 10: Apart from being unhackeable or erased, precious metals are one of the few assets that offer anonymity. It is a private and confidential form of wealth.
Reason 11: The precious metals market is quite unique in terms of diversity. It can add a lot of variety to any investor’s portfolio. You can get from Ameircan silver eagles to Australian platinum platypus.
Reason 12: Precious metals are valuable globally. Regardless what currency you use ($, €, ¥, £), if it loses value or becomes worthless, it is always a good idea to own a globally valuable good like precious metals. Even more considering that…
Reason 13: Gold and Silver are easily liquefied. Whether you have gold and/or silver in coins or bars, trading them for cash is fast and easy.
Reason 14: You dont need to be an expert to invest in it. There is no need for special skill to purchase gold or silver.
This chart shows how gold has performed when there was financial crisis, meltdowns or insecurity. When people fear or are insecure about the economical future they seek the security of precious metals, increasing its demand and therefore raising its value.
A significant number of economic gurus are saying that the economic bubble existing right now is a lot worse than the one that blew up in 2008, people are aware of this and are already buying gold and silver to get some security upon the uncertain future. Everything makes me believe that gold and silver values will hit historical highs when this bubble pops, I would say that if there is a time to invest in gold and silver, the time has come.
After saying that I must say that it is an investment, and even if they are small, there are chances of losing money. Before taking action I do recommend you to do your own research and compare the information given here.
You might be interested in:
The 50-30-20 rule, how to manage your money.
Rich Dad Poor Dad by Robert Kiyosaki
Fastlane Millionaire by Gary Keller
I won't keep you much longer, thanks for your time and remember, keep growing :)