You can buy and hold gold to diversify your assets in any economy. Learn several ways to add precious metals to your portfolio, courtesy of industry leaders at Gold Safe Exchange.
In an uncertain economy and rising inflation, it’s important to diversify your saving strategies. As noted by the Gold Safe Exchange website, gold has outperformed the Dow Jones Industrial Average for over a decade. There are several reasons it makes sense to purchase and hold precious metals, including the following.
Owning Precious Metals
“Precious metals like gold are an asset you can expect to maintain or increase in value over time when looking back at 20+ year historical averages,” according to representatives at Gold Safe Exchange. People buy gold because it holds its value and typically increases in value over time.
Gold and silver “stackers” aim to collect as much of these precious metals as possible. This could include bars, rounds and coins. “Stackers” look for precious metals in any form and seek out bargains. Products meant to be stacked include bullion coins such as the Gold Canadian Maple Leaf, Gold American Buffalo, Gold American Eagle, and Gold South African Krugerrand.
Collect Precious Metals
You can also purchase collectible items made of precious metals. Rounds, coins and bars also fall into this category. Collectible coins worth more than their weight include dimes and quarters made before 1965, which consist of 90% silver. Other examples include Morgan and Peace silver dollars and Saint-Gaudens double eagles $20 gold coins. Since collectibles are more valuable than less popular coins, you don’t have to buy as many to grow your wealth.
Gold and silver can be an excellent hedge against inflation.
“Thousands of our clients buy gold and silver to provide protection against the decreasing value of the dollar,” Gold Safe Exchange officials noted.
You can also collect bars and rounds. Many people pay well above spot prices to own particular rounds and bars. Plus, you have the added advantage that even if they become less popular, gold and silver collectibles retain the intrinsic value of their underlying metals. The same is not true of cars, toys, and popular culture collectibles.
Gold Safe Exchange Provides Wealth Diversification
“Markets are cyclical, and history repeats itself. The 2008 crash cut the wealth of most Americans in half,” according to Gold Safe Exchange advisors.
Most fiduciaries who want to maintain credible reputations advise clients to put their accumulated wealth into different baskets. How much gold or silver should your assets contain? This allocation depends on your risk tolerance. You may want to put at least 5% to 10% of your savings into precious metals to offset stocks, exchange-traded funds, and bonds, which are susceptible to volatile fluctuations.
You can even diversify within precious metals, including palladium and platinum, as well as gold and silver bullion, for example.
Stock Precious Metals for Retirement
Did you know that you can include precious metals in your Individual Retirement Account (IRA)? Self-directed, precious metal IRAs can provide a tax shelter. Check with Gold Safe Exchange to learn more about how to open a precious metal IRA. It’s typically pretty easy to get started by opening and funding an account then purchasing precious metals.
Precious metals act as a financial safety net for individuals looking for liquidity and stable value over a long time. Gold and silver bullion, bars and coins, including collectibles, present one option for including these assets in your wealth management plan. You can also include precious metals in your self-directed IRA. So, consider holding these assets as part of your overall personal financial strategy.