Protect Your Purchasing Power with Precious Metals
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 economic conditions and geopolitical trends that will most likely affect your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.
Precious metals are valuable due to their rarity, industrial and technological demand, and consistent liquidity, divisibility, and durability as real money.
Gold and silver have been used as a means of exchange and a store of wealth for thousands of years.
If you currently invest in precious metals, you understand the value in diversification. Precious metals are used to hedge and help stabilize a portfolio when inflation and geo-economic uncertainty are present. Physical precious metals are a way to diversify away from debt encumbered investment vehicles.
The purchasing power of precious metals:
How do precious metals protect your purchasing power?
Paper currency values can be manipulated by government policy. As a government continues to print paper currency, the paper’s purchasing power weakens, and the costs of goods, services, and commodities rise. Gold and silver are commodities that must be tangibly produced as opposed to printed. The cost to produce gold and silver rises with inflation. Paper currencies lose value due to excessive government deficit spending. As a government goes further in debt, precious metals will offset the loss of purchasing power over time.
Inflation is another form of taxation. An “inflation tax” is regressive. The definition of regressive is to return to a previous and less advanced state. Gold and silver are considered by many as the best way to protect against the regressive effects of inflation.
Why are physical precious metals considered a conservative investment?
Unlike many paper investment vehicles, physical precious metals are void of counterparty risk. When you own physical precious metals, no one is borrowing or loaning against your holdings. When debt is attached to an investment, a higher level of risk is present.
Debt encumbered investment vehicles are considered speculative and can become worthless when adverse market conditions are present. Physical precious metals carry no debt and are considered a hedge. Gold and silver have never gone to zero in value.
When you own physical gold and silver, no one is borrowing or loaning against your financial future.
How can I maximize my purchasing power when acquiring precious metals?
Choosing the right precious metal dealer is paramount.
A legitimate precious metal company will:
- Offer live online product purchase pricing, ensuring full transparency.
- Provide a free buyback policy for their clients.
- Allow clients to guarantee transaction pricing prior to funding.
- Offer its clients the services of a dedicated in-house IRA department.
To help ensure that you receive more metal for your money at purchase, and more money for your metal at liquidation, utilize this simple checklist to help you choose the right precious metal company.
FAQ: Your Key to Understanding!
How do precious metals protect against inflation?
Precious metals, such as gold, silver and platinum, can help protect against inflation because the cost of production rises with inflation. Owning precious metals can help you protect the long-term purchasing power of your money. When the value of money decreases due to inflation, precious metals often hold their value, making them a reliable choice for investors looking to safeguard their wealth.
Is it safe to invest in precious metals?
Investing in precious metals can be considered relatively safe due to their historical stability and ability to hedge against economic uncertainty. However, like any investment, precious metals will fluctuate in value, and a properly diversified portfolio will help mitigate portfolio volatility.
Why should I own precious metals?
Owning precious metals can promote portfolio stability during market uncertainty and can help protect purchasing power when inflation is present.
Would you like to know how you can protect and diversify your IRA into precious metals? Contact Orion Metal Exchange to discuss the benefits of owning precious metals and see how you can protect your purchasing power today. Call 1-800-559-0088, for a FREE investor kit.
