Investing in precious metals can be confusing and intimidating if unfamiliar with the process. However, when it comes to putting your money to work, precious metals are one of the best options, with some very real benefits.
1) Investing in precious metals gives a feeling of comfort
There is peace of mind knowing your investment will hold its value and that you have an asset you can use as collateral. Investments like precious metals are a tried-and-true form of security, unlike fluctuating stocks and bonds or other forms of paper currency. When you put your money into precious metals, it’s there to stay for years to come; you can rest easy knowing your investment will be secure.
2) You don’t have to hold physical metal
Once you understand how important precious metals are to your portfolio, it’s good to consider having some allocation—even if that means using an online custodian to hold physical metals. If you don’t want to deal with storage or worry about whether or not your gold is insured, there are plenty other ways to invest in precious metals without holding physical metal yourself.
For example, J. Rotbart & Co offers a variety of options for investors looking for exposure without holding any physical assets themselves; these include ETFs and ETNs that track gold and silver prices and allow investors to benefit from price movements without taking on any storage risk.
3) Owning gold provides diversification
The potential of owning gold is essentially infinite, as it’s one of a select few precious metals that has an almost constant demand around the world. Because gold has so many practical applications—from jewelry to electronics—its price tends to rise and fall slowly, making it an ideal addition to any investment portfolio. If you’re interested in how to invest in precious metals and want advice from professional investors who understand your needs, call J. Rotbart & Co.
4) The history and trust of gold give peace of mind
The history of gold and its unchanging nature means it can be relied upon to protect your purchasing power against rising inflation and offer a currency-like alternative to government bonds. For thousands of years, gold has served as money, so it’s no surprise that investors still consider it one of their top choices for long-term wealth preservation. As J. Rotbart & Co says: Gold is real money… It is a tangible asset with intrinsic value… Governments or central banks cannot manipulate it. Gold is universally accepted as payment for goods and services around the world. As someone looking to invest in previous metals, there are plenty of different precious metal types you can look for. You can buy silver coins, gold bars, or simply jewelry.
5) Gold has resiliency, doesn’t lose value when other markets crash
This is quite simple: gold and silver have a resiliency that other markets do not. Silver has been used as currency for thousands of years, so it’s certainly no stranger to financial turmoil; as a result, its value tends to hold up when other markets suffer.
6) Gold provides privacy, security, and anonymity
Buying gold and storing it yourself provides privacy, security, and anonymity. When you hold your gold at a reputable storage facility, you can quickly transfer your holdings from one location to another quickly and easily; moreover, you’ll be able to trade your gold for cash (or vice versa) 24 hours a day with full anonymity. Many investors prefer not to have their names or addresses associated with their investments—and owning precious physical metals is no exception.
7) There are tax benefits
No, we’re not just talking about tax breaks—though there are plenty of those. Owning precious metals can save you money on your taxes over time. Depending on how you invest, you could defer paying capital gains (or even avoid them altogether). This is especially true for investments where you buy gold and silver bullion and store it in a vault. You also might be able to write off some of your investment costs and any fees for storing or insuring your metal holdings.