Investors have been enjoying significant returns this year despite everything that has been happening in 2020. It seems the prices of nearly every asset class has experienced considerable price returns. One of the oldest investments, precious metals like gold, are approaching all-time high prices that haven’t been seen in years. This psychological price level has investors wondering, is now the time to buy precious metals?
Certainly, it has proven to be a good investment over the years. Keep reading this guide to learn the benefits of investing in precious metals and why so many investors are waiting in line to have the opportunity to own the shiny assets.
-
Maintained Demand Throughout Time
Throughout history, metals like gold and silver have been used to make beautiful jewellery that was looked at as royal and elegant. It was found in the tomb of the king of the first Egyptian dynasty, Djer. And in 1500 BC, the shekel became a standard unit of currency in the middle east, a gold coin consisting of 2/3 gold and 1/3 silver.
Since its discovery, it has been looked at as a form of investment, something you can hold onto that can increase or at least maintain its value. This is why countries have massive reserves of precious metals stored for investment purposes, including:
- The United States
- Germany
- Italy
- France
- Russia
- China
- Switzerland
- Japan
- India
- and the Netherlands
These countries have the top ten holdings of gold, and many other countries are also buyers of the precious metal. Finding precious metals for sale has been a challenge recently, with prices increasing significantly.
-
Diversify Your Investments
One of the top advantages of precious metal investments is their ability to diversify investments and protect them when other asset classes underperform. An excellent example of this can be observed as the U.S dollar faces weakness – precious metals prices tend to increase.
There are a few ways investors can go about finding precious metals for sale. First, they can invest by buying stock and deciding which companies they would like to buy equity in. You can do so by signing up for a brokerage account and researching various companies.
You can also invest by buying precious metals directly and owning the physical asset. The difficulty investors are having is determining fair precious metals prices. Consider using a Precious Metals Subscription and receive a monthly assortment of your favourite assets to avoid this issue.
-
Precious Metals Are Liquid
When making investment decisions, it’s critical to consider the assets’ liquidity or how easily it will be to buy or sell them on the open market. This is important because if an asset begins to lose value and you need to sell it, you can do so without taking a significant loss.
Luckily, they are in demand and stay fairly liquid as investors are always looking for ways to store value.
Learn More About What Assets Make Good Investments
If you’re looking to grow your wealth and have the ability to retire, investing and buying assets is the best way to go about it. Investments like precious metals give investors the ability to hold onto an asset that has proven its worth throughout history. Many people wait for the perfect opportunity to begin investing, but most of the time, waiting to invest only results in having to pay more.
To learn more about what assets make good investments, check out our website for more information.
