Gold and Silver
Gold and silver have long been recognized as valuable commodities and have historically served as a store of value and a hedge against economic uncertainty. Investors often turn to precious metals like gold and silver during times of market volatility, inflation, or geopolitical turmoil, as these metals have shown resilience in maintaining their worth over centuries. Gold, in particular, has been used as a safe-haven asset, capable of preserving purchasing power when other investments may falter. Similarly, silver holds both industrial and precious metal properties, making it sensitive to economic fluctuations and, at the same time, a valuable asset for its role in various industrial applications.
Here are some key points to consider about gold and silver as investments:
Gold as an Investment:
Safe-Haven Asset: Gold is often seen as a safe-haven asset, especially during times of economic uncertainty or geopolitical instability. Investors tend to flock to gold as a hedge against inflation, currency fluctuations, and economic downturns.
Diversification: Gold has a low correlation with other asset classes like stocks and bonds. Adding gold to a diversified investment portfolio can potentially reduce overall portfolio risk.
Store of Value: Gold has maintained its value over time and is considered a reliable store of wealth. It has intrinsic value and is not subject to the same risks as paper currencies.
Liquidity: Gold is highly liquid, and it can be easily bought or sold in various forms, such as coins, bars, and exchange-traded funds (ETFs).
Inflation Hedge: Gold is often used as a hedge against inflation. When the value of paper currencies declines due to inflation, the price of gold tends to rise.
Silver as an Investment:
Industrial Demand: Unlike gold, silver has significant industrial uses, making it sensitive to changes in industrial demand. Approximately half of the global silver supply is used in various industrial applications, including electronics, solar panels, and medical devices.
Currency and Store of Value: Like gold, silver has also been used as currency and a store of value throughout history.
Lower Cost: Silver is more affordable than gold, making it accessible to a broader range of investors.
Volatility: Silver tends to be more volatile than gold, with its price experiencing larger swings. While this can create opportunities for higher returns, it also increases risk.
Get started
Buy physical Gold, Silver at a local authorised dealer. The best way to hold this investment if you have somewhere secure to store.
ETF, purchase shares of an ETF that tracks gold at your brokerage account.
Bullion Vault based in Switzerland, purchase an allocated amount of gold or silver that will be securely stored for you. Great for the convenience, next best thing if you are not able to securely hold it yourself, and convenient to sell on again using the platforms resell market
Kitco based in Canada, providing a few options to purchase physically online or to buy into a pool account. The pool account is a nice way to purchase precious metals without storage costs and is very liquid if you wish to sell again with small spread costs.
Precious metals can be an essential component of a well-diversified portfolio, but they should be used in combination with other investments to achieve a balanced approach to wealth preservation and growth
Snapshot
Why should you invest in this? The investment which has stood the test of time for 1000s of years
Percentage of portfolio to invest? 5%-15%
Our Risk rating? over time will hold its value an increase with inflation4.5/5
Our overall rating? 4/5
How do I start? Bullion vault, Kitco, ETF