Gold and Silver are tangible assets that continue to appreciate over time. These metals are used as a hedge against inflation, stocks and erosion of major currencies. Gold and Silver also rise in value when other investments are failing. Gold and Silver bullion provide competitive rates compared to other major financial assets. This article aims to teach one the basics of how much to invest in Gold and invest in Silver.
When constructing your personal financial portfolio, it is crucial to diversify your assets in case some fail. This way if one of the investments fails, you still have backup routes to assist you financially. Putting all your eggs in one basket will create unwanted risk to your capital. Diversification can help investors to reduce the volatility of an asset’s price movements and ultimately manage risk. Keeping some of your money in stocks, crypto, real estate, precious metals and index funds is an example of diversification. If one investment fails, you will thank yourself for your investment in Gold and investment in Silver.
When purchasing gold and silver, investors understand that there will not be a large short term return. Therefore, keeping Gold and Silver should be about 10-15% of your portfolio. This way, some of your money will be kept stabilized with the precious metals and some will grow with more rapid investments. If you have extra cash or money laying around, you are not saving it. Technically, as more money is printed, the less valuable your dollars will be. Gold and Silver act as a hedge against inflation and while currency is losing its value, your Gold and Silver will continue to increase in value. Overall, your portfolio relies on your risk tolerance and financial situation. Depending on these variables, you can keep a bigger or small share of precious metals in your portfolio.
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