Wealth Preservation through Precious Metals:
Precious metals add diversification to your present portfolio. Just like housing, the stock market or debt based investment, precious metals rise and fall. However, right now may be perfect timing to capture the next rise. If you have other investments but no precious metals, consider silver before you begin investing in gold. The price is far less so you can purchase a larger quantity and it doesn’t require as high of a price jump to get a solid return. This has always been the most attractive quality of silver in modern investing.
The Silver & Gold Market:
The silver market is relatively small. In fact, there is far more gold available for investment than there is silver. Because of the smaller market, you’ll see more volatility and larger swings in price. In many cases, for the speculator, this can mean huge profits. You can use this to your advantage.
When you see a price spike and feel you’ve made the profit you want, selling can improve your overall return. You can keep the money liquid and purchase again when the price downturns. If you need guidance in and out of the precious metals market you should always seek a professional.
For those in a buy and hold mode, inflation will drive your silver prices up as prices of all goods increase. So can the increased demand for silver by industry. Unlike gold, Industry uses most of the silver in the production of other goods. There’s a small supply of silver, compared to gold, and as industrial needs increase, and the law of supply and demand simply drives the price skyward. Those in a position of buy and hold will see comfortable profits that keep up with inflation and surpass it over the long run.
As noted previously, silver can add protection to your portfolio without the high cost gold incurs. Investments in silver protect against disaster if the stock market takes a downward spiral, the dollar drops or interest rates go south. If you invest in silver, only risk between 10 and 20 percent of your assets in the precious metal area. You might want to diversify some of that to other precious metals besides silver, namely gold, to be even safer. While you won’t become a billionaire by including a small percentage of silver and gold to your portfolio, it can boost your overall returns and protect you if all other asset classes fall.
Many people are worried about inflation and its effects on their portfolio. One of the best ways to protect your hard earned wealth is through buying gold and silver and how a precious metals strategy fits into your current investment objectives.
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