Protect Your Wealth for Your Children with Precious Metals
When people think of investing, they often think of buying blue chip stocks for their nieces or nephews that will pay out maybe $100 over the next 20 years. They may also think of flipping houses as a way to make their money work for them. There is a litany of different ways to increase your income through investing. But one way of strengthening and diversifying one’s portfolio that is often (and unwisely) ignored is investing in precious metals.
Precious metals like gold and silver have been in people’s investment portfolios since the earliest days. People still use them effectively to this day, investing in metals and gems to hedge against stark market fluctuations in tumultuous times. The experts at Guildhallwealth.com have compiled a list of great reasons that you should consider adding precious metals to your investment portfolio if you haven’t already.
People have been investing in both gold and silver seemingly forever. Gold and silver are cultural markers of wealth, which is why they were used as universal currency at one point. They are a proven investment device that almost always pays out long term. Because of their proven success, precious metals should be a part of any shrewd investor’s holdings in some form or another. The experts at Guildhall Wealth Management recommend investing in bullion (gold or silver) or even fancy diamonds as a way to defend against bear market losses.
It may not seem wise to invest in precious metals when the Federal Reserve keeps lowering interest rates. The other shoe will drop at some point, though. The interest rates will have to go back up again to help fight inflation — and this will help preserve the purchasing power of the general public. This is another great reason to invest in gold and silver — it is negatively correlated to the rest of the market. When the stock market is performing poorly, one can buy gold at a reduced premium, and when the interest rates climb back up, that investment flourishes.
The economy usually worsens during times of political trouble and social unrest. It is important to note that precious metals usually act inversely to this trend when it comes to value. This may be because gold has many uses besides just its monetary value. Business magnate George Soros recently moved a hefty percentage of his holdings into precious metals because he predicts that the Asian and European markets are going to have a huge downfall in the coming years.
Oil Prices are falling
This is another reason that many economists are predicting that our economy is due for a downturn. People may be enjoying the falling prices of gas at the pump, but that could spell out a negative result for the economy in the long run. This is another reason it might be a good idea to hedge against the economy and add some precious metals to your portfolio.
These are four great reasons to consider opting into precious metals. A healthy financial portfolio is usually heavily diversified. Precious metals are an ideal part of a healthy and diverse financial portfolio. They are especially important if you think that the economy is due for a huge drop off in the coming years.