Recently, there has been a notably large rise in the number of new investors attracted to the buying of precious metals in order to protect their financial future in these times of financial instability. But why are people choosing to invest in gold and silver over other investment options?
Here we look at the top reasons why precious metals have long been and continue to be a popular addition to an investment portfolio.
1. Precious metals are a tangible asset
Real physical gold and silver can be seen, touched, and held in your hand, unlike other investments like stocks and digital currency.
Precious metals cannot be erased or wiped away, unlike digital assets such as computerised bank accounts or cryptocurrency; an online hacker cannot erase a gold Sovereign coin from existence - it will continue to remain in your portfolio.
Unable to be destroyed by fire or water, gold and silver coins and bars do not take any upkeep or maintenance, they can simply be stored until the day they are needed. With physical bullion, it is more than a few 1’s & 0’s in a computer, or a paper symbol with a promise of value – it’s real, actual, physical wealth.
2. Gold and silver are real money
The oldest form of currency in the world, it has long been said that physical gold and silver are the ultimate form of money.
Precious metals cannot be created out of thin air like digital and paper money - gold and silver are limited resources and both can be instantly recognised and traded across the world. Every country speaks the language of gold and silver, and although their prices may fluctuate, their value remains timeless. Paper money may devalue over time, especially in times of economic instability, yet when other markets struggle, precious metals have the amazing ability to hold and often appreciate in value.
3. Precious metals are practical
Gold and silver are incredibly practical when it comes to both buying and selling. Both metals are available as coins and bars in a variety of sizes, and investments can be easily stored and/or broken down to use as and when required. Gold and silver bars and coins can be sold virtually anywhere in the world, due to their instantly recognisable store of value.
Assets are a great way of protecting wealth but selling them back to liquidate funds can be a key consideration when investing. Gold and silver can not only be sold almost instantly in this modern age, but little knowledge about these precious metals is required to invest in them, making them increasingly desirable.
4. There is increasing demand for gold and silver
Global demand for both gold and silver has been growing around the world for some years. India is currently one of the largest gold consumers in the world thanks to their love for jewellery, particularly during wedding season, and China has high demand for gold due to gold bars being a traditional form of saving and gift-giving. Global demand is also growing due to investors, as many more of us are now seeing that gold or silver can be a positive addition to an investment portfolio in order to protect our financial future in these unstable times.
Demand for silver is also growing, not only due to investors, but also because of its use in many major industries such as medicine and electronics.
When it comes to gold and silver, sooner or later demand meets supply - and eventually, it may not quite match up.
5. Precious metals can offer protection
Investors use gold and silver to protect their future wealth. In a world of economic uncertainty and mounting global debt, they are often regarded as a safe haven, offering many advantages that other investments cannot.
In times of global financial or political instability, precious metal prices tend to climb, and, as the cost of living tends to rise, we see gold and silver used as a hedge against inflation. And when world tensions are heightened, people flee to the safety of gold and silver as they often outperform other investments. For example, the summer of 2020 saw gold prices soar to record breaking heights due to the fallout from the Covid-19 crisis.
Holding physical gold or silver coins and bars can provide ultimate control over your own wealth, offering a timeless safeguard against financial crisis. They can be a way to preserve wealth for the future, and are often passed on from one generation to the next.
Why do people invest in gold and silver?
There are many reasons why many people choose to invest in precious metals over other assets. Considered a relatively ‘safe’ investment, gold and silver are not only a tangible asset and a limited resource, but also a practical and trusted form of money recognised across the world that can be used as a hedge against inflation.
If you’re looking for an investment to protect your financial future, there are many notable options worth considering when it comes to precious metals. More easily accessible than ever before, gold and silver coins and bars are often available at the touch of a button, making this investment highly valuable to the modern investor.
If you have any questions or would like to know more about buying gold or silver from Atkinsons Bullion & Coins, please call and speak to a member of our knowledgeable team on 0121 355 0620 or send us an email to email@example.com.
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.