Precious Metal Alert: Are Gold and Silver Today’s Safest Investments?

Investing is always an excellent idea. You put your money somewhere, sit back and relax, and wait for the gods of capitalism to reward your courage. Unfortunately, excellent does not equate to safe and if you’ve had your heart broken by some charming girl or dude once upon a time, you probably already know this. Still, excellent ideas are worth discussing. So here’s one: investing in precious metals.

Why Precious Metals Continue to be Popular

If you’ve been wondering why selling gold and silver continue to be a thing, here are possible reasons:

  • War or Political Turmoil – National and geopolitical crises have a direct bearing on the game of trade and investment. The current global political unease drives people to look for assets that are tangible and can easily be transported if need be.
  • Financial Concerns – Political crises render currencies unstable; precious metals take up the slack.
  • Inflation – Despite fluctuations in the rates of other assets, gold and silver maintain their value.

Risks and Rewards

Just like any form of investment, precious metals come with both inherent potentials and deficiencies. It pays that you know each of them before you decide on investing in them or not:

Thumbs Up:

  • Diversification – If you go by the mantra “never put all your eggs in one basket”, precious metals are another good option to add to your existing assets, such as stocks and bonds.
  • Substantial Return – Despite their mistaken reputation of slow ROI, precious metals have, in many instances, surpassed other forms of investment concerning growth.
  • Maintaining Value – Precious metals such as gold and silver will never lose value.

Thumbs Down:

  • Rip Off Risk – Not all that glitters is gold. Some are counterfeit.
  • Volatility – Just like stocks and bonds, mutual funds and currencies, the precious metal market could become volatile.

Investing is not for everyone, but you wouldn’t know if you have the golden touch unless you try. Listen to experts, read personal accounts of people who have done it before. Only then should you decide.

Yes, don’t get easily charmed.

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