Why You Should Invest In Precious Metals

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written byTrevor Vernon
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Why You Should Invest in Precious Metals

Thinking of investing your savings into something solid? Consider investing in precious metals. They provide huge benefits, the biggest being safety. It is an extremely safe and stable investment because metals are not affected by inflation. Precious metals have their own intrinsic value, meaning they cannot be inflated as more of them cannot be printed like currency. The metal in itself is physically worth something. Moreover, precious metals do not lose their value over time and only gain value over the long term as proven by history. Let’s go over the full list of reasons you should invest in precious metals in detail ahead.

 

High Liquidity

Money invested in assets such as properties or vehicles can take quite some time to recover. There are many procedures to go through before the sale of assets. In the case of property, tasks need to be done such as renovations. There is also a huge amount of legal paperwork and procedures to undergo before the property can be sold off. Cars also have the same kinds of procedures with ownership transfer paperwork, as well as work such as denting, painting, and so on.

On top of everything, finding a seller in the first place can be extremely difficult and, in some cases, you may not be able to find a buyer of your assets at all. All of the obstacles you face whilst trying to sell your assets can make it a very time-consuming and lengthy process to turn possessions into cash. On the contrary, there is hardly any preparation needed to sell your precious metals. There is no paperwork involved in selling any kind of precious metal. You seldom ever need to take any other steps either before straight-up selling it. This is why your investment in precious metals is a highly liquid one as it takes nearly no time at all to convert your metals into solid cash instantly without any need for legal procedures and so on.

You won’t have any trouble finding a buyer for precious metals as there are countless buyers and metal is a very standard good. You can choose to sell to a private buyer or to sell instantly at an establishment that buys metals such as coin dealers. It takes minutes to convert the metal into currency. In fact, it’s said that precious metals are as liquid as cash itself.

Ever-Increasing Value Due to Scarcity

The fundamental rule for deciding upon the value of an asset is its availability. The scarcer something is, the more expensive it is. The more abundant, the cheaper. In the case of precious metals, they only get scarcer with time as they continue to be mined and harvested. For this reason, the value of your precious metals will only be increasing with time.

This is backed by history. If you look back on the value of any precious metal, whether it be gold or another metal, its value has only increased with each passing year. Furthermore, metals are not mined as much as they were back in the day due to environmental and safety reasons, meaning there is an even faster depleting reserve that is not expecting any drastic increases at all.

The scarcity linked to the precious metals and their ever-increasing value makes them an ideal method of saving. Indeed, they will not give a huge number of dividends compared to a different method of saving such as stocks or bonds, but at the same time, they offer a much safer, risk-free way to store your savings where you know the value will not decrease and will only maintain its worth.

Inflationary Protection

In a fast-paced world, it’s hard to trust the economies to stay stable forever without expecting another economic event such as booms or recessions. Every few years there are huge changes within economies as well as changes in where they stand against each other. During an economic turmoil, savings in the form of currency can be affected heavily by these economic changes. Currency may drastically lose its value as has been seen many times in history, and changes in the value of different currencies against each other are the norm.

The value of your currency can decrease or increase at any time and always poses the risk of a loss. However, although the value of precious metals such as gold may seem hot-blooded in the short run, they stay stable and ever-increasing in the long run. One of the biggest reasons to invest in precious metals is the lack of metals being affected by inflation. They are unaffected by economic conditions so are one of the safest ways to save.

This is because they have their own intrinsic value, unlike bills and coins, so their value cannot be manipulated by printing more of them. Throughout history, it can be noted that gold has been one of the safest and most stable stores of value thanks to its intrinsic value.

High and Stable Demand

Another great reason for investing in precious metals is the high and stable demand for them. The use of precious metals in jewellery and the fashion industry will always remain. Tonnes of precious metal are demanded just for fashion use only and jewellery made of precious metals is one thing that will never be out of fashion because of its practicality.

People all around the world not only buy jewellery to wear but keep jewellery as a store of value too. In many cultures and countries, storing jewellery is the primary way of keeping savings. Not only have precious metals maintained their value as ornamental metals, but other industries are also now requiring them more than ever. Silver, for instance, has an extremely large demand as it is being used in a huge array of industries and commodities nowadays. It is used in such as special machinery and equipment as well as in silverware and medals.

Gold is used in dentistry, electronics, and countless other industries. If you didn’t already know, Palladium, Platinum, and Rhodium are used for all sorts of industries such as automotive pollution control, and they are even used in your catalytic converters. All in all, there is abundant demand for precious metals throughout the industries.

Valued Globally

Precious metals are truly international currency. No matter where you are in the world or where you take your precious metals, they’ll always have their intrinsic value no matter what. All precious metals are universally recognized, valued, and accepted. You can easily travel or move to another country and you would not have to change anything unlike the need to change currency when moving from one country to the other. The value of commodities such as jewellery made out of precious metals does not change in one country or another.

Better yet, you can seek out short-term boosts in metal prices in specific countries, and choose to sell them there. Contrarily, you can wait for a short-term dip and then buy your store of metal at the right time in the right place. In the end, you’ll know the value is only increasing.

No Third Parties Involved

Nowadays you need the aid of a third-party institution such as banks and so on to help you with whatever transactions you need to make. If you need to transfer money to anyone, you need to do it through a bank or at least withdraw the money from an ATM. If you need to save your money, you would most probably open a savings account. Everything related to your currency is recorded and has a paper trail, giving you very little privacy.

What’s worse is, many institutions try to scam you too when dealing with financial matters, and it's hard these days to tell the difference between sincere and insincere financial institutions. The story is different with investing in precious metals. Whatever you do with your precious metals is personal. You can maintain discretion from the outside world when there is no medium required to purchase or sell your metals. It is very convenient when you may not want the world publicly knowing your true worth. Whatever purchases and sales you make with your precious metals are not monitored by any party and neither do they require a middle-man company or entity to aid you in buying, selling, or storing.

There is no financial institution involved and you’re free to do what you want with your metals whilst enjoying full privacy.

 

Great for Your Future Generations to Inherit

There’s no knowing what the future holds. It can be very tricky business to leave large amounts of cash to your future generations. This is because there is always uncertainty caused by inflation in economies and changing values of currencies. You never know when a currency’s value diminishes following a drastic economic event.

For this reason, it is well worth considering keeping precious metals such as Gold aside for your children to inherit. This is a great option because the value of precious metals appreciates over time and it does not have chances of losing value due to economic factors. No matter what the future holds, the metal will stay metal and it will always have its intrinsic value.

Your future generations will highly appreciate the antique jewellery you left for them to pass onto their future generations too not only practically but emotionally. It only makes sense because metals are best for long-term savings.

Great Store of Value

Precious metals are not diminishing goods. They have an essentially perpetual shelf life as precious metals, such as gold, do not corrode. They can be stored extremely long-term without their physical condition depreciating at all. In many cases, antique metals such as very old jewellery and ornaments are valued at an even higher price than modern-day ornaments.

This means precious metals are a very sustainable and stable store of value. You can physically hold on to your metals for generations and never worry about them physically losing their intrinsic value.

 

Tips for Successfully Investing in Precious Metals

Insure Your High-Value Possessions

Precious metals have a high value, meaning they can be insured against theft or loss with a valuables insurance policy. This will give you great peace of mind when storing your precious metals, as well as protecting you from unfortunate incidents. Insurance does not cost much but has the immense benefit of acting like a complete safety net for you and your possessions.

One doesn’t really realize the benefits of insurance until they face an unexpected problem. Insuring your valuables is much better than regretting you didn’t. Make sure your policy covers the full value of your metals or jewellery.

Keep the Metals Safe in a Vault

It’s a good idea to keep your metals in a locker such as one provided by many banks or other institutions. Make sure to go for a trusted vault service to store your metals. You’ll save yourself from the risk of unexpected and unfortunate events such as robberies or break-ins, and will not be having to continuously check on your possessions in fear of losing them.

It is not very expensive to rent a vault but is extremely worth it when you have peace of mind knowing your assets are safe and protected. Many depositories and vaults offer an insurance policy to go with their services, which can be a great option for you.

 

Conclusion

Like all investments, you should be extremely careful when investing your hard-earned money into something you think will provide you good value. It’s a great idea to insure your investment and to keep them stored safely in a vault.

As long as you’ve taken the proper precautions, your inflation-proof investment will surely pay off. There are few reasons not to go for investing a percentage of your savings in precious metals and it’s very unlikely you’ll regret the decision to go for one of the most ideally stable and secure stores of value that is not dependent on any third-party firm or service.

With the reasons for why you should invest in precious metals wrapped up, we wish you good luck in your precious venture.

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