Investing in precious metals can be a challenging experience for any first-time investor. These commodity markets use their own lingo with words that include bullion, proof, spot and fineness. For the investor that has been considering investing in precious metals, either as a hedge against uncertainties of the dollar, or as an effective tool to create a profit, gold, palladium, platinum and silver offer the opportunity to achieve both.
During the recent recession, the US dollar plunged to an all-time low point against the euro and had reached a five-year low against the Japanese yen. Without quick decisive action from the White House to produce any effort in slowing the growing trade deficit, and wrangling in the federal budget, many economists fear the US dollar is most likely to continue falling more in the upcoming months and years.
Holding Physical Assets
Physical assets have always been a positive way to diversify any investment portfolio, especially when that portfolio contains a high level of paper assets. However, individuals highly invested in real estate are recognizing that those physical assets have become extremely volatile. It appears that only bullion bars and coins of gold, platinum, palladium and silver, along with semi-numismatic coins, have the potential of actually diversifying a portfolio for profitable results.
Many financial advisors are developing strong financial planning for their clientele by assisting them in accumulating bullion bars and coins of gold, platinum, palladium and silver in conjunction with semi-numismatic coins. It is their belief that portioning the portfolio using hard physical assets works as both a short-term solution for diversification, and as an effective long-term strategy.
Precious metals are still considered one of the best methods for asset protection whether or not economies are experiencing good times or bad. As a wealth insurance, gold, platinum, palladium and silver continue to hold their worth, when other trading instruments including currencies, bonds, stocks and real estate have lost their value, or have the potential for doing so.
During the last half decade, the United States dollar has dropped in value by nearly 50% of its worth in direct correlation with other major currencies. At the same time, the spot price of gold, palladium, platinum and silver have increased. Even with the recent reversal of the precious metals market, investing in precious metals is still a good financial decision as a long-term investment.
A Worthwhile Opportunity
For centuries, investing in precious metals has served as the ideal safe haven for long-term and short-term investors during times of economic strife and political uncertainty. The economic climate that exists today allows prudent investors to take full advantage of the worthwhile opportunity of converting a portion of their assets into one of the four major precious metals.
The Rarest Elements on Earth
Precious metals will always be the most valuable and rarest elements on earth. The future will continue to allow the precious metals to be a store of value as an investable asset for all types of investors including buy-and-holders, along with long-term and short-term traders.
Billions of dollars continue to be invested in precious metals. The majority of the total investment can be attributed to the purchase of bullion coins and bars of gold, palladium, platinum and silver.
Investing in precious metals can assist the investor in preserving the value of their investment savings. They serve as an important tool to hedge against currencies and inflation, along with providing protection against worldwide financial meltdown.
In addition, making an investment in precious metals is a hedge against economic crises where the average individual can lose their purchasing power due to escalating prices. With the ability to sell bullion bars and coins of gold, palladium, platinum and silver, holding the physical assets seems to be a prudent move in diversifying a portfolio.