Investing in physical gold and silver has numerous benefits for investors. This section highlights the primary reasons why gold and silver are such highly sought-after precious metals and why investing in gold or silver is a smart, safe and profitable long-term investment.
Gold has a long history as both a valuable financial asset and a treasured symbol of beauty, wealth, power and many other cultural significances across the globe.
Because of its many uses – from jewelry to technology and even medicine – gold is bought and collected by a wide variety of consumers, collectors and investors around the world. Thus, demand for this unique precious metal is substantial – the amount of gold bought each year has quadrupled since the early 1970s and the volume of gold produced annually has tripled.
Here are the main reasons why you should invest in gold:
- Gold is a tangible hard asset – it is more secure than digital assets.
- Gold is real money which holds its value, as its supply cannot be diluted.
- No default or counterparty risk as with other types of investment.
- Diversity of demand keeps the market for gold robust.
- Provides competitive returns compared to other financial assets.
Like gold, silver is genuine money that has historically been used as coinage even more frequently than gold. Additionally, silver is a similarly wide range of uses, including technological and industrial uses, and is also coveted as a beautiful precious metal.
Here are the top reasons to invest in silver:
- More affordable than gold for the average investor.
- Greater volatility – outperforms gold in bull markets.
- Continual growth in industrial uses means growth in demand.
- Global supply of silver is falling, raising its value even further.
- Demand for silver jewelry is outpacing gold in certain countries like India.
While investments in the stock market or real estate can crash at any time, gold and silver remain stable investments whose value only increases in difficult economic climates. After thousands of years, the appeal of these precious metals has never faded and is, in fact, stronger than ever.