Gold and Silver investing is considered a great and safe asset and a hedge against inflation. However it is not as safe as bonds and a certain degree of research has to be done before plunging into it. The reason why gold investments have a slight degree of risk involved is that the value of gold does not necessarily have to be high or stable. Gold generally is considered precious and is costly due to its rarity. If for some reason the markets are flooded with gold, it could very easily depreciate in value. However generally, its value remains stable or may even inflate with time, the same applies to Silver.
You may wonder how stable exactly is Gold investing. Currently, its demand far outweighs its supply. Thus gold investments seem to be the next big thing and the future seems bright for the investors. As the amount mined is barely half of its worldwide demand, the prices for gold can only rise steadily in the years ahead.
What this implies is that to avoid a severe gold shortage, the prices of gold are bound to rise. Only this will either decrease or check the tremendous demand for it, and keep it in control. However for the investor, it all adds up to being a favorable time to invest in gold, silver and even copper.
Some other important key points you should be aware of is that you should refrain from investing all your money just in a single form of gold. You can invest in plenty of forms one being physical gold. This is the most common and includes gold in the form of ornaments, gold biscuits or slabs. This is generally how people begin and it constitutes a secure foundation to build on. However, there are other areas also that you could invest in. Gold mines in the nascent stage or better still undiscovered, potential goldmines provide a tremendous opportunity to increase one’s wealth.
Sometimes you may find mines under performing or the quantity being mined is way below its potential. But even if the mines are not producing in large amounts, due to the tremendous demand it is very possible that they could increase the quantity being mined, proving to be, a good investment.
Another advantage that mines have over physical gold is that unlike ornaments or gold slabs, mines cannot be misplaced, lost or stolen from you. Thus your investment is stable and very secure. These factors make gold investment a beneficial venture to invest your money in.
Now, investing in physical metals or an etf should be a part of a diversified portfolio and I would not personally invest over 5% of the value of my portfolio however this can be a great option if you want to hold something that will keep it’s value over time. Cryptocurrency, Stocks and Real Estate Investments trusts should also be a part of your portfolio and of course, keep around 10% in cash in case you need liquidity.