While the world’s financial system is quite complex with many investment opportunities, precious metals remain one of the most popular investment choices when people are trying to protect their retirement savings against economic downturns. Gold and silver are the two most popular options for investing in precious metals, and, of course, you have a wide variety of choices when it comes to gold and silver as an investment.
One option invites you to hold gold and silver with both intrinsic and collectible value via coin collecting. Many people like to invest in gold and silver bullion, but there are ways to invest in gold and silver without actually holding any gold and silver. For starters, you can have another company hold the precious metals for you, or you can invest in securities issued by companies that are mining for gold and silver or involved in the industry in some other way.
Investing in securities isn’t going to be the same thing as investing in the actual precious metals. There is more risk involved, and investing in gold and silver as safer investments represent investing in the actual metals themselves. If you are planning on adding precious metals to your portfolio, the suggested percentage for most people would be around 5-10 percent.
Paper money is rather boring, and one way to put your money into something that isn’t boring and that will increase in value is to buy gold and silver. This is one of the biggest reasons why people invest in gold and silver.
While many people would like to invest in gold, silver is also great and it’s cheaper. Therefore, many people choose silver so that they can buy more and have more potential for capital gains. Gold has seen many gains in recent years, and while silver has as well, some people think that silver is poised for a rather large uptick in the near future.
Gold and silver are considered to be very good investments over the long-term, and that is something that has stayed true throughout history. If you owned any gold and silver prior to the last decade, then you saw huge gains. Do you remember when the price of gold skyrocketed in recent years? That was one of the biggest gains the price of gold has ever seen.
You can buy silver and gold in small increments a little at a time if you want to build up the precious metals portion of your investments. Think of it as buying US savings bonds or something with a guaranteed return, a good one at that. Some people choose to only invest in gold and silver instead of opting for investing in securities with more of a risk.
Who knows if the supply of gold and silver will one day start to be scarce. If that were the case, then both metals would skyrocket in price over and over again. Can you imagine what that would mean for your portfolio?