Let’s talk about the pros and cons of investing in precious metals.
In the early times, gold and silver serve as ancient coins for the purpose of trade and primarily accumulate wealth. They are seen as a status symbol that only a few affluent people own. Later on, these precious metals are utilized to make paper currencies which lasted up until the 1900s. Today’s money, however, is predominantly fiat currencies that don’t require a physical commodity such as gold and silver.
So we ask, are gold and silver worth investing in these days?
Unlike land properties that can be sold for a notably higher price, commodities such as metals don’t produce as much cash flows as the majority rely more on stocks and interest-paying bonds.
Be that as it may, gold and silver can still be a relative source of funds in the time of crisis. They are another form of “investment portfolio insurance” that acts as a safeguard against inflation, economic volatility, and uncertainty. Considering that it’s a physical commodity, it’s ownership is actual and can be sold directly to an interested buyer. One can bargain for a reasonable amount following an actual collection of cash upon sale. Another thing about owning physical gold is that it’s a limited commodity that grows at a slow rate. It being rare and uncommon increases its value as opposed to investing in the stock market.
The best recourse is to own physical gold and silver like bullion, bars, and coins. This is the safest and simplest way to invest in these metals. Coin dealers will have a greater deal buying them as they can markup prices when passed on to the customer. Hold them in a vault or a safe deposit box from the bank if you deem it more secure.
Some believe gold is an unproductive asset which is why they turn to mining stocks instead. Because mining companies can expand at some point in the future, investors can also get their share from increasing production. Besides, most mining companies produce other commodities that could yield better investments other than gold and silver.
No one can really tell the possibility of reoccurring to the trading of something of value but many view gold as “a safe-haven” investment in case paper money ceases to be valuable. This is why investors are inclined to increase the price of gold whenever financial markets become volatile.
Owning precious metals alone won’t sustain you in the long run. If you wish to uplift your financial affairs significantly, you might have to look for other means to get it going.
Although gold is a premium asset, they are contemplated to be volatile investments. In recent years, the value of gold and silver rises and dips every year which demonstrates its biggest flaw Yes, it can aid you for the time being but it doesn’t truly hedge against a long-term economic depression more so a global pandemic where even establishments fall into bankruptcy.
Other than its trend in the stock market, it can also be difficult to spot genuine gold and silver coins without expert advice. Usually, gold-plated steel is mistaken for real gold and can be sold at junk shops at around PHP500 to a thousand depending on the weight.
In conclusion, owning gold, whether it be in jewelry or bar form, it can be an asset subject to a mortgage or even sell to mining companies at a fair price. Have a talk with your financial advisor or an expert in precious metals to know more about its status in today’s market.