Reasons Why Investing in Precious Metals Is More Profitable Than Trading Stocks
Scientific evidence has repeatedly found precious metals to be an effective way of diversifying your portfolio. The Journal of Investing quoted that allocating about 25% of the investment portfolio reduces the risk of loss and improves portfolio sustainability. Amongst precious metals, some metals like gold have better standalone performance than other precious metal products. Experts suggest investing in precious metals is better than trading stocks.
A Firm Hedge Against Inflation
Consider there is peak inflation in your state, and you have some gold in reserve. Owning gold has a directly proportional relationship with the dollar. While inflation causes an increase in dollar prices, gold tends to become more expensive. This way, your investment never depreciates due to inflation.
Trading stocks, on the other hand, tend to be more volatile in elevated inflation. Increasing inflation is deadly for stocks and the economy. This also depends on what type of stocks you have. Growth stocks at least perform poorly during high inflation.
Precious Metals Are a Low-Risk Investment
It’s not that precious metals are free of investment risks—no investment is completely risk-free. Risks on precious metals, however, can be easily avoided or are quite low. Liquidity risks and counter-party risks on precious metals can be avoided by owning physical precious metals than ETFs.
Trading stocks come with high credit risk. Stockholders are usually the last priority of a company when it comes to paying their money back. There are no such risks with precious metals. You can have their sole ownership. Precious metal IRAs, however, are regular retirement accounts that you can open with one or more parties.
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Precious Metals Have Intrinsic Worth
The idea that gold, silver, or platinum don’t have an intrinsic worth is misconstrued. Apart from investments, all three of them are heavily used in the automobile and manufacturing industries. The jewelry industry uses precious metals like no other.
The value of a trading stock continues and ends with the parent company’s sole value. Once the company suffers a loss, trading loses its worth by default.
We understand precious metals are a trustworthy investment. That is why we deal in precious metal IRAs and secure vault storage for gold and silver in Los Angeles. We offer customers effective solutions for their precious metals purchasing and storage queries. Apart from assisting clients investing in gold coins IRAs, we also deliver their precious metals to their specified depository. Connect with us at 1-800-559-0088