The Different Advantages of Gold and Silver
The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by the economy and geopolitical trends that will most likely place impact on your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
To protect against inflation, geoeconomic uncertainty, and market volatility, many investors are turning to precious metals to help secure and stabilize their investment portfolios.
Investing in Precious Metals
Unlike paper stocks, tangible precious metals are commodities that investors can physically own and possess. As inflation rises, commodities rise in value and help offset the loss of purchasing power in fiat currencies. Additionally, Physical precious metals have an inverse relationship to paper stocks. When stocks fall in value, precious metals rise in value and in times of war and global conflict, precious metals remain stable while other investment vehicles become more volatile.
Gold and silver are commonly used to diversify and hedge against unforeseen market volatility. Proper diversification is the key to success as no one is expected to know what the future may bring. However, gold and silver can offer different advantages. Let’s look at the differences between the two:
The upside potential in physical silver
Compared to gold, silver is significantly more undervalued. To determine value, always consider the cost to produce and the past performance of the commodity. The cost to produce silver moves higher with inflation, which is why investors continue to own physical silver to protect purchasing power over time. Silver reached a high of $52 per ounce in 1980 and $49 per ounce in 2011. Unlike gold, silver supply is constantly depleted due to industrial and technological applications. The depletion of supply adds upside potential due to supply and demand fundamentals.
From a logical or pragmatic perspective, consider what you can buy of value for $30 these days. You won’t get far on $30 today. However, owning an ounce of silver that is considered money under the US constitution and used to produce solar energy, cell phones, cameras, computers, etc., it’s easy to see why investors view silver as an extremely undervalued asset that offers massive upside potential at current levels.
Protecting purchasing power in physical gold
Gold has long been revered for preserving wealth and combating inflation. Unlike paper fiat currencies, gold and silver coins command an actual cost to produce. Gold’s scarcity, universal recognition, and physical ability to withstand corrosion make it a reliable long-term store of value. Gold’s indestructible physical attributes enable investors to protect their purchasing power indefinitely. When markets are volatile and economic uncertainty prevails, gold is a beacon of stability. Its price tends to rise when other investments falter, making it an effective hedge against the unpredictability of stocks, bonds, and fiat currencies. In times of economic uncertainty and rising inflation, gold has consistently demonstrated its ability to retain value. During significant economic events such as the oil crisis in the early 1970s and the 2007 subprime crisis that led to the global financial meltdown, the divergent performance of gold became apparent.
As fiat currencies have failed throughout history, physical gold has continued to hold or gain value over time. This is why governments, central banks, and investors alike own physical gold to offset the risks in paper debt and geoeconomic uncertainty. Gold is considered by many as the premier combatant to protect against inflation.
Investors are trending towards purchasing precious metal coins in precious metals IRA accounts to offset the current market conditions. Orion Metal Exchange will help you find the best precious metals IRA program to suit your investment needs. We offer the most precious metal custodian and depository options in the industry. A precious metals IRA is an IRS approved program that offers investors the ability to own gold Eagle coins and invest in gold or silver products.
FAQ: Your Key to Understanding!
How do inflation and economic downturns affect the value of gold and silver?
During inflation and economic downturns, the value of gold and silver typically increases. This is because they are perceived as safe-haven assets, maintaining their worth when other investments decline. Investors often turn to gold and silver as a hedge against currency devaluation and economic instability, leading to higher demand and consequently higher prices for these precious metals.
How can The Orion Metal Exchange IRA department help investors own precious metals like gold and silver within a retirement account?
The Orion Metal Exchange IRA department enables investors to own precious metals like gold and silver in a retirement account. With a simple phone call, investors can seamlessly buy, sell, and exchange precious metals, providing a secure and tax-deferred way to diversify their accredited retirement accounts.
Orion Metal Exchange presents this article for both our investors and perspective investors, offering insights into precious metals and their relevance amidst economic and geopolitical trends. To explore precious metal investing further, dial 1-800-559-0088 for a FREE investor kit.
Contact us today to know more about our services.
