Investing in Precious Metals

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According to precious metals offer value because they are beautiful, useful, rare, virtually indestructible, and have worth. However, investors see precious metals investing as a safe haven against inflation because they maintain their value over the course of time, unlike paper investments. To own a successful investment portfolio you must diversify, and precious metals offer the best way to accomplish this task. A diversified portfolio is better at weathering storms like a sinking stock market then keeping all of your eggs in one basket.

The best way to diversify investments is to own physical precious metals. Gold and silver bullion bars are an excellent choice for large investors, and bullion coins are good for all investors. While most do not buy gold or silver for income the current low spot price of silver and gold make sound profits possible, because both metals are expected to rebound during the second half of 2013.

Forbes says that gold has long been the symbol of wealth, and this tradition goes back to ancient times. Early civilization’s produced gold jewelry and gold was part of America’s currency until the 1930s. Today, many are telling us that our money isn’t worth the paper it’s printed on. There is truth to this statement because gold no longer backs the money supply. Indeed, many see gold’s spot price as not really being high, but a reflection of how worthless the dollar really is.

Flat currencies dominate the world economy, and there is reason to be nervous. Certainly the flat dollar allows the Federal Reserve to better micro-manage the economy and they have kept interest rates artificially low, which has stymied economic growth. However, flat currencies have also brought staggering amounts of debt to the western economies, because it allows governments to borrow as much as they please. Unfortunately, Europe and the US have maxed out their credit cards and the hens have come home to roost. As a result we had the Great Recession and continue to suffer economically as a result.

Yet, gold and silver allow investors to weather economic difficulties. Certainly precious metals have gone through a deep price correction in 2013 causing gold and silver to dip in price. Some panicked sellers thought the world was coming to an end and sold off their gold and silver for a loss. However, precious metal investors, like stock investors should remain in the market for the long-term, and not bail out at the first hint of trouble. Why? Because during this long gold and silver bull run there have been corrections before, and these two metals have rebounded stronger after each previous correction. The same thing will happen this time too.

Do not make the mistake of running to paper stocks or fiat dollars for save haven, because they will not endure. The fundamentals remain in place for stocks and the dollar to tank, and for gold and silver to go up. Silver and gold may not set records in 2013, but they are still valuable as a hedge against the coming inflation.