Various different precious metals such as gold, platinum and silver have been widely used throughout the world, not just for their beauty, but also their value as well. As a matter of fact, since time immemorial the most common precious metals such as gold and silver have more often than not, being widely considered to be the ultimate criterion when it comes to assessing an individual’s wealth.
Here, it is pertinent to point out that gold and their silver counterpart coins have been traded as a form of currency for almost three thousand years or so. And indeed, to this very day, such precious metals are widely considered to be excellent long investments not just in the US, but also the rest of the world, as well. There are many reasons due to which precious metals are considered a better investment than many other types of investment opportunities out there. Let us take a quick look at a few of them:
o Precious metal vs. paper
Many people (especially newbies who are investing for the first time) tend to believe that the investments that they have made in an ostensibly volatile stock market (and that also includes money market funds mutual funds, as well as the stock options of different companies) are completely safe investments. However, the fact of the matter is that nothing could really be further from the truth. Due to the extreme volatility of this market, there is no way of knowing for certain, that the amount you have invested, would lead to a highly lucrative profit, within a very short period of time.
As a matter of fact, such massive fluctuation is basically part and parcel of the trade, with markets going from bearing to bullish to being bearish all over again, sometimes within the trading hours of the same day!
o Precious metals viz-a-viz digital currencies
Only a short while ago, people were investing in digital currencies like there was no tomorrow… Before they crashed, and many people were reduced to becoming paupers. However, the value of precious metals is almost everlasting (after all, they are called ‘precious’ for a reason).
o As a sure fire hedge against creeping inflation
Investing in precious metals has the capability of providing a certain level of protection against slow and gradual inflation. While paper currencies can erode in value, barring a few mild hiccups, the precious metals (especially gold and silver) tend to retain their value over an extended period of time.
The sheer stability as well as the high value of gold, silver and precious metals make them the ideal investment choice when you want to keep your money safe and add to your wealth at the same time.