Precious metals have been used as currency almost as long as humans have walked the earth. Despite the evolution of economies, cultures and governments throughout history, they still remain some of the world’s most valuable commodities. Investing in gold, silver, platinum and palladium may seem like a practice that is limited to celebrities or other extremely wealthy people. In reality, anyone can reap the benefits of investing in precious metals. Here are six reasons why opening a precious metals account could be a smart decision for you.
1. Precious Metals are Increasing in Value
Gold, silver, platinum and palladium are limited resources. They are used in numerous applications, from jewelry making to electrical conduction, but they are produced very slowly in proportion to how quickly they are consumed. This is because they must be mined, and it is estimated that miners are now on the short end of the earth’s precious metal resources. Thanks to this decreasing supply and increasing demand, precious metals are becoming more valuable, which makes them good investments. In just the first four months of 2016 alone, gold has increased in value by 15 percent, to around $1,250 per ounce.
This trend has certainly not escaped the notice of international finance experts. For example, the central banks of countries such as China and India are racing to acquire gold. If you own such a valuable resource, you may eventually be able to sell it for great profit.
2. You Can Expand Your Portfolio
Any good investor knows the importance of having a balanced portfolio. If all of your money is tied up in stocks, then all of your investments will tend to rise and fall together. By investing in other assets, such as precious metals, you avoid putting all of your eggs in one basket. The worth of your gold investments is not dependent on the fate of your stocks, so diversifying your portfolio allows you to minimize personal risk. People who invest in gold also tend to experience profitable and stable rates of return.
3. Protect Yourself Against Inflation
One of the strongest benefits of investing in precious metals is that it is a way to protect yourself against inflation. You may think that putting money into your retirement account is all that you need to do to enjoy a comfortable life when your time in the professional world ends. However, there is the grim possibility that the rapidly decreasing value of the dollar will nullify your careful savings. The amount of money that you are on track to have saved by retirement might end up not being enough for you to maintain your current standard of living, let alone exceed it.
On the other hand, if some of your retirement assets are tied up in precious metals, you have some protection against this outcome. All signs indicate that these assets will increase in value over time, so chances are high that your investment will grow even as the dollar is diluted.
4. The Prices are Final
The exact pricing of precious metals fluctuates from day to day. However, if you choose to work with a company like Regal Assets, you pay a set price both for the assets you purchase and for the associated fees. You will not have to go back and pay additional money if the price of gold changes. On the contrary, when you purchase a precious metal, the sale is final. If recent pricing trends continue, you should see a comfortable return on your investment before long.
5. Range of Options
Gold is the best-known, and most valuable, of the precious metals. However, it is not your only investment option. If buying gold would not make financial sense right now, you can invest in silver, palladium or platinum instead. These assets are still valuable investments, but their price ranges might be more attainable if you would prefer to simply test the waters of this type of investing.
Metal commodities exist under two main categories: Bullion and rare coins. Bullion is priced by its weight value depending on what type of metal it is. For example, you could purchase a ten ounce bar of gold bullion for the price of ten ounces of gold. Rare coins are coins that are either infrequently minted or are no longer minted at all. These coins are valued both for their precious metals content and for their scarcity. Both bullion and rare coins are available in multiple weights and designs.
6. Simple and Secure
Certified gold IRA companies offer straightforward processes for getting started with investments. For example, Regal Assets has a panel of experts who will walk you through each step of setting up your account and making purchases. Consulting with people in the know makes it easier to determine what types of investments are best suited to your circumstances.
How your assets are stored depends on what type of account you have and what your personal preferences are. If your precious metals are part of your retirement account, then they must be held in an approved, secure facility or they will be subject to taxation. You can and should insure these assets while they are being stored. Investments outside of your retirement account can be delivered to you directly. Regal Assets uses safe delivery practices to get your goods into your possession. From there, you can transfer them to a safe deposit box at your bank or even in your home.
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Investing in precious metals might just be one of the best ways you can allocate your money. Awareness of the benefits of investing in precious metals is becoming more widespread, so the time to act is now. If you are interested in making this type of investment, your next move should be to discuss your options with an expert. Experienced custodians can provide you with guidance about what investments make the most sense for you and how to proceed with them wisely. Check out the service options offered by Regal Assets if you want to put your money somewhere it really counts.