Why Invest In:

Gold Preserves Wealth

The reasons for gold’s importance in the modern economy center on the fact that it has successfully preserved wealth throughout thousands of generations. The same, however, cannot be said about paper-denominated currencies. To put things into perspective, consider the following example:

In the early 1970s, one ounce of gold equaled $35.9 Let’s say that at that time, you had a choice of either holding an ounce of gold or simply keeping the $35. They would both buy you the same things, like a brand new business suit or a fancy bicycle. However, if you had an ounce of gold today and converted it for today’s prices, it would still be enough to buy a brand new suit, but the same cannot be said for the $35. In short, you would have lost a substantial amount of your wealth if you decided to hold the $35 as opposed to the one ounce of gold because the value of gold has increased, while the value of a dollar has been eroded by inflation.

Pros of investing in silver bullion

Silver can offer protection — As mentioned, investors often flock to precious metals during times of turmoil. When political and economic uncertainty are rife, legal tender generally takes a backseat to assets like gold and silver. While both gold and silver bullion can be appealing to investors, the white metal tends to get overlooked in favor of individuals investing in gold, even though it plays the same role

Silver offers higher returns than gold — Silver tends to move in tandem with gold: when the price of gold rises, so too does the price of silver. Because the white metal is currently worth around 1/79th the price of gold, buying silver bullion is affordable and stands to see a much bigger percentage gain if the silver price goes up. In fact, silver has outperformed the gold price in bull markets. It’s possible for an investor to hedge their bets with silver bullion in their investment portfolio.

Gold as a Safe Haven

Whether it is the tensions in Eastern Europe, the Middle East, Africa, or elsewhere, it is becoming increasingly obvious that political and economic uncertainty is another reality of our modern economic environment. For this reason, investors typically look at gold as a safe haven during times of political and economic uncertainty. History is full of collapsing empires, political coups, and the collapse of currencies. During such times, investors who held gold were able to successfully protect their wealth and, in some cases, even use the commodity to escape from all of the turmoil. Consequently, whenever there are news events that hint at some type of global economic uncertainty, investors will often buy gold as a safe haven.

Platinum Liquidity

An investment that can be turned into cash is considered liquid. High liquidity equals a higher chance of cash potential. Gold is an extremely liquid commodity. Huge volumes of it get traded on the daily. Because platinum has low liquidity, it is more susceptible to swings in price. In theory, this makes it easier to buy low and sell high. There is also less platinum in circulation than there is gold. If purchases of platinum rise, the low liquidity makes it easier for the price to rise with fewer buys.

Low-Risk In Investing In Platinum