Apart from being shining, shimmering, splendid, precious metals are extremely valuable commodities. Metals like platinum, gold, and silver are more than just collector’s items, but they are investments that hold their value. Unlike mutual funds, uitfs, bonds, and stocks, precious metals are not backed by fiat currency, nor are they dependent on volatile. As such, precious metals are used to store value, so you can have something to hedge against the dreaded inflation.
Today, many countries around the world still rely on a paper currency which industry professionals note is backed by nothing. For this reason, precious metals are rising in popularity because of the historical data that it holds value. Consider the top five shining reasons why you ought to invest in these precious metals:
Holds Long-Lasting Intrinsic Value
When you want something that retains its value, you rely on precious metals. Unlike your paper bills and coins, which are just promissory notes with no permanent value in and of itself, precious metals have been tested by time in holding their value. In fact, they have a permanent intrinsic value which is why they are dubbed precious. Furthermore, a lot of industrial applications need these metals, making its value appreciate even more. When you buy precious metals, you can rest assured that it has long-term value.
Meets a High Demand
Precious metals like platinum, palladium, silver, and gold are in demand. A lot of industries use them in a broad range of applications. Apart from being used in jewellery and accessories, gold and silver are important for electronic parts. Similarly, palladium and platinum are very much needed by the automotive industry. Both collectors and investors also ensure that there is always a demand as they continue to hoard bullion from suppliers.
Proffers a Broad Range of Options
When you think of metals, you are accorded a lot of ways to invest. Virtually any person can invest in their metal of choice at any price point. Those who are just beginning their foray into this world can buy gold and silver coins, bars, etc. Those who are very much fancy gold but cannot afford the current spot price for a whole ounce have options because there are various sizes to choose from. Even silver and platinum can be bought in bullion, rounds, or bars. Just shop around for the best deals.
Use as a Hedge Against Dreaded Inflation
Unlike paper currency which is backed by nothing, you can expect your precious metals to retain their value over time. Investors count on these metals to fight inflation. For example, an ounce of silver in the 1970s has an intrinsic value that has grown in the past decades. In contrast, the value of the dollar in the 70s is not the same as it is today. Back then, you can feed a 4-person family at a fast food joint for $5. Unfortunately, today, this same amount can only meet the needs of one person.
Provides a Great Investment for The Years to Come
Finally, the passage of time has proven that precious metals have either maintained or increased its value. In ancient times, gold and silver were already prized possessions and considered valuable. Though there may be fluctuations in price, there is still a no better investment than these sparkly things because they store and hold their value. As an investor who’s looking to grow your money, you need to diversify into buying these precious metals. It is a smart decision to park your money here because you are assured of getting value for your hard-earned money.