If you're looking for reliability in a very uncertain time, you might be considering reconfiguring your investments. Instead of high-risk stocks or other investments, maybe you're thinking that you'd like to add something a bit more solid to your portfolio — and for solidity, nothing beats precious metals. Read on to learn the top three benefits of precious metals investing.
1. Intrinsic Value
Gold and other precious metals have intrinsic value — which essentially means that they're actual physical products that the world needs. Precious metals are used not only for luxury items like jewelry but also for industrial equipment, medical devices, and other important things. For example, many cardiac pacemakers today have platinum components.
On the other hand, many stocks and other types of investments simply don't have that built-in value. With a precious metals IRA or other type of precious metals investment, you know that regardless of what is going on in the world, you've got an asset that has value. Like any other asset, it can fluctuate — but a precious metals investment never loses all of its value. At least so far, gold and other precious metals haven't ever been worthless.
When you make an investment, you usually intend to do so for a long time or at least a relatively long while. But, life has a way of throwing curveballs to us all, and that's when you might just need to get your hands on some cash fast. If you invest in precious metals, you have a liquid asset. Essentially, this means that it's easy to turn gold into money when you need it by selling it in the commodities market.
Compare purchasing a piece of real estate as an investment versus precious metal investing and you'll see why liquidity is so vital. If you have an emergency, precious metals can get you money fast while real estate cannot.
Investing in precious metals along with your other investments can be a great way to diversify your portfolio. Many times in the past, precious metal values have moved in the opposite direction from other investments.
Although precious metals naturally lose some value (just like everything else) during a crisis like a pandemic, in general, they don't tend to plummet to the same level that other investments do. By adding precious metals to your portfolio, you get some back-up for the times when other investments seem to be in a state of virtual freefall.
Want to learn more about investing in precious metals? Reach out to your local precious metals investment company, such as McAlvany ICA.