There are many different investment options you can choose from. Depending on market conditions, different investment vehicles can offer different benefits. It is important to hold a properly balanced portfolio because no one should be expected to know what the future holds. A properly diversified portfolio will promote stable and consistent growth in bull and bear markets. Physical precious metals are a key component to a properly diversified portfolio.
The key benefits of investing in precious metals:
Protection of wealth from inflation and natural erosion over time
Unlike traditional investment vehicles, physical precious metals command a cost to produce. With inflation, the cost of payroll expenses, utilities, equipment, maintenance, leasing, insurance, fuel, and transportation rise. Which causes the cost to produce an ounce of precious metal to rise. When inflation is on the rise, the cost to mine these metals will rise too. This is why many investors view precious metals as the number one combatant against inflation. Demand also dictates the value of precious metals. The supply of precious metals is constantly being depleted due to social, technological, and industrial uses. Inflation and demand cause these metals to rise in value over time.
And of course, they have a financial and trading value to investors as well. Unlike other commodities, these metals have a shelf life that is essentially perpetual and conducive to a long-term store of wealth.
Precious metals are inversely related to most paper investments
A government can manipulate a fiat currency with the stroke of a pen. Unlike fiat currency, governments cannot print these metals. In fact, governments will stockpile them to globally legitimize their fiat currencies. Precious metals protect against currency devaluation when a government intentionally manipulates and devalues their currency.
Unlike precious metals, stock values can go to zero. Stocks can lose value based on risks caused by inflation, legislation, compliance, and funding liquidity. Most stock companies are borrowing or loaning to conduct business, and debt adds risk to any investment equation. When owning these metals, no one is borrowing or loaning against your financial future. When you own physical precious metals, you own an investment free from debt.
Hence the reason these metals have been considered a safe haven investment, and a secure way to preserve wealth in times of financial meltdowns and uncertain political or economic conditions.
Also, they have a very low correlation with stocks and bonds, and when market volatility is in play, physical bullion coins can help maintain financial stability.
Did you know you can own tangible precious metals through a deferred tax program?
If you are looking for an IRS approved precious metal retirement program, consider asking Orion Metal Exchange about Gold IRAs. A gold IRA offers you the ability to own physical precious metals in a deferred tax program.
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