Gold and palladium spiked 20% in 2020 as investors sought a safe harbor for their money in a year of turbulence and uncertainty. Silver and platinum also rose impressively by 47% and 10% respectively.
But this has always been the case with precious metals. Big and small investors have turned to gold, silver, and other metals for hundreds (if not thousands) of years as a way to make their money work for them in times of upheaval.
Gold alone has increased in value 17 times in the last 20 years. And by June of last year, precious metals have already outperformed all other commodities or hard assets.
And the most compelling reason for many people to buy precious metals? There’s peace of mind in holding that substantial and affirming bar of silver and gold in your hand.
In the following article, we’ll explore five reasons why investing in precious metals are so popular.
Return on Investment
Silver and gold have been proven winners for investment for over two decades. And the rate of return is not expected to slack as 2021 rolls on. Despite a dip at the beginning of the year fueled by general uncertainty over worldwide economic policies, precious metals are expected to climb high.
There are two ways to invest in precious metals. You can buy, own, and store the metals, or you can invest in a financial product. A precious metals advisor manages these funds or retirement accounts.
However, although you invest your money into these precious metal commodities, you don’t actually own any silver or gold, for instance.
Hold Precious Metals in Your Hand
Alternatively, you can contract with precious metal brokers to buy the actual metal you’re investing in. Some of the best of these companies offer a monthly subscription. Under these plans, you pay a certain amount of money each month, and, depending on the plan, you get coins or bars in return.
The amount of gold or silver delivered each month varies on market forces and the subscription rate.
You’ll never be wowed by the design of your JP Morgan retirement account, but you will be by your gold or silver coins. One of the more interesting things about investing in precious metals is that you can opt for the metals to come as intricately designed coins. These discs are often engraved by some of the most famous metal workers in the world.
Among these engravers and minters are the Royal Canadian Mint, the Perth Mint, and Geiger Edelmetalle. You can invest in American Gold Eagles, Candian Maple Leafs, even African Krugerrands.
For us who crave a simpler life, there’s no simpler way to invest than a metal that you can hold. You don’t need WiFi, customer portals, or a digital wallet subject to lost passwords or hacking.
Ease of Purchase
Lastly, one of the best reasons to purchase precious metals is that they don’t require contracts. No go-betweens will get in between you and your buying and selling. Also, precious metals have no shared liability. You won’t take a bath holding on to your own gold bar because no one is mismanaging that investment.
Your Next Steps
The long-term outlook for investing in precious metals looks good. To buy your own gold, silver, or other precious metals, research your options.
Ensure that the dealer guarantees safe and secure shipping and that customer reviews give them high rankings for dependability and customer service.
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