The following article is created and or curated by the Orion Metal Exchange for the benefit of our followers.  We seek to provide relevant precious metals, economic and geopolitical content that can impact your retirement and savings. If you are interested in learning about precious metals investing, call 1-800-559-0088, for a FREE investor kit.  

Dealings in precious metals have been around for centuries, and gold is still considered as a “crisis commodity” that always holds its value and is internationally recognized. People have always been attracted to the precious metals market for a variety of reasons. The main reason for wanting to dive into the market being stability; as precious metals have persisted to remain valuable over the years.

Precious metals are named as such because they are extremely rare. Their limited numbers is what makes the value of these metals so high; with prices going up the scarcer they become. This blog highlights three reasons why you should consider investing in these metals.

Helps Against Inflation and Deflation

Precious metals such as gold have historically proven themselves to act as an excellent hedge against inflation. This is because the price of gold tends to rise as the overall cost of living increases. Gold tends to be priced in the same currency units, so when prices are rising, so does the price of gold.

Deflation is described as a period during which prices decrease, business activity slows down and the economy might face excessive debt. During these times people tend to hoard cash and they do that by keeping it in the form of gold bars or coins. Due to this, the purchasing power of gold soars and enables it to counter the effects of deflation.

Portfolio Diversification

The entire reason behind diversifying your portfolio is to have investments that are not closely related to each other. This way, if one investment is risky, you will have other sources at the ready and are not left without any money.

As mentioned before, gold is one precious metal that has a negative correlation with stocks and other financial instruments. Its price rises while the price of stocks decreases, so having an investment in gold will save you when stocks aren’t looking great. Investing in metals and stocks and bonds properly can help reduce the overall volatility and risk involved.

gold bangles jewellery

Tangible and Liquid Assets

One important thing to note about paper assets is that they are not entirely yours at the moment. Paper assets are potential wealth that you stand to gain once you trade it for goods, services or hard assets.

Hard assets are precious metals, real tangible things that hold intrinsic value. During times of volatility when paper assets can fluctuate, hard assets provide safety and the greatest returns immediately after these times. Precious metals such as silver and gold are also very liquid assets. There are always people looking to buy precious metals, you can also just sell to pawn shops, coin dealers and banks.

Want to invest in precious metals but don’t know where? Orion Metal Exchange is here to help answer that query! As one of the top investment companies, when you choose us, you can buy gold and silver coins online with ease. We have 50 years of experience in the industry so you can rest assured that our offers are reliable and secure. Contact us now to start investing!   

Precious Metals Data, Currency Data , Precious Metals Automated Product Pricing Powered by nFusion Solutions