The global pandemic has severely affected the economy. Significant cuts on income, the rise of unemployment rates, and the financial market crisis influence fiat currencies’ fluctuation.
Looking at the speed with which the crisis spread, physical assets stay much more stable, and here’s why.
The statement above may seem untrue when pure numbers are taken into account, as the spot price of gold and silver has also been affected by the ongoing situation.
In fact, it reached highs on August 7 – $2,089 for gold and $29.92 for silver – only to drop down a few days later. What happened then? It rose again so that now it stands at about $1,936 and $26! Thus, it’s clearly not the definition of “stable” – at least it seems so.
Seasoned precious metals investors know that this is the right time to develop a strategy. People who already held gold and silver assets in hand may have sold it when the sudden rise occurred, but that might not be the best decision. Why? Because the value is set to rise again in the future, according to all predictions.
Here’s an example from history: from August 1976 to January 1980, gold rose an unbelievable 721%!
Some extreme views claim that the margins may rise as much as “five-digit gold” and “three-digit silver,” but that’s unlikely. In any case, with a large degree of certainty, it can be said that the near future will see the high rise of bullion – and those that have accumulated precious metals assets are in luck.
Another occurrence that we’re witnessing on a day-to-day basis is inflation of fiat currencies, the US dollar and Euro being at particularly bad terms. Gold and silver cannot be inflated as easily, and are known to perform well during times of economic crisis.
Whether in the form of coins or bars, precious metals remain a store of value and symbols of wealth – even more so today.
Whereas the primary use of gold is jewelry and awards, silver found its way to many industries, from medical to tech. With scarce sources and high demand, the maths is clear: their value will not stop to grow.
Diversifying your physical gold portfolio is the key. What does this mean?
People who have the opportunity usually combine silver and gold assets. Such a strategy leads to success regardless of the outcome.
For instance, say that the price of silver grows at a greater pace, which is very likely considering its demand and liquidity.
Those who possess both precious metals can trade silver and save gold for the right moment.
On the other hand, the benefit of gold is that investors do not have to pay taxes for bullion products that are above $1,000.
When you decide that it’s the right time to sell your bullion, you won’t have trouble as there are plenty of dealers and passionate investors. Plus, how easy it is to transport an ounce of gold?
With physical assets, you feel as if you have control over your wealth, and not the changing situation that has brought every sector of people’s lives upside-down.
There’s low risk, if any, that you will lose money in the long term.
Furthermore, it cannot be destroyed by natural disasters, such as fire and floods. Some may argue that the same goes for online currencies and accounts. True, but: Can it be hacked or erased?
To paraphrase it – gold is money, but it’s superior to paper money and any currency, even the online ones.
What are other uses of physical gold and silver?
You can keep it for generations. Potentially profitable, precious metals assets comprise 5-10% of the inheritance liquid wealth.
Especially interesting are coins that have historic value in addition to their precious metal content. Most of them have a legal tender value, though, of course, that’s not of any relevance for their real value. Design, rarity, and size matter.
Besides, did you know that precious metal assets can be used to fund your Individual Retirement Account? Investment held in Individual Retirement Accounts allows people to establish a secure future for them and their family, and bullion items are there to make it even safer.
If you still haven’t begun to accumulate precious metals, the best way to go is getting it from an authorized and reputable dealer, such as Pacific Precious Metals. Buying physical assets in such a way offers the only private form of wealth that can be used for financial investment and transactions both in and out of the country. Generally, the risk of counterfeit with precious metals is substantially low compared to other forms of money, but obtaining it from trusted retailers is vital.
If the predictions are right, you have another two months to do your shopping before prices start to rise again. And even then, do not rush with the selling.
Big swings like what we’ve seen the last couple of weeks are a certain indicator that there will be profitable periods in the foreseeable future.
Ultimately, gold and silver will always have a high value. There’s never a bad time to own assets that have irreplaceable, timeless worth; and now’s a particularly good one.