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Gold & Silver: The Key To A Well-balanced Portfolio

January 28th, 2014

People who wish to invest their hard-earned money are almost always advised to trade in the stock market. Buying and selling stocks can lead to fantastic profits if you know how to play. Indeed, countless individuals have become millionaires in this manner. Yet the stock market has a habit of sliding down every so often and causing much grief to those who have risked all of their savings. If the Great Recession has taught us anything, it is that putting all your eggs in one basket makes you extremely vulnerable in times of stress. The best way to protect one’s self from downturns is to have a diversified portfolio.

Alternative Investments

People have sought alternative investments after learning this painful lesson. For many, investing in precious metals is the way to go. Gold and silver have always been the most popular ones. These metals have been considered to be of great value for thousands of years. They are symbols of royalty and divinity. They have inspired numerous myths and legends. Even in the modern world, they still retain their mystique while revealing that they have a lot more to offer underneath. Other types of metal are gaining traction as well including palladium and platinum. Investors will find plenty of options should they choose to take this path to financial stability.

gold bars

Intrinsic Value

Paper money by itself does not hold much real value. Their worth is determined by how much central banks are willing to assign to them as printed on the notes. Metals are different as they have an intrinsic value based on their usefulness to society. Gold has been utilized for jewelry-making since time immemorial. The same goes for silver. They are found in rings, necklaces, earnings and functional pieces such as wristwatches. They are staples in luxury items from handbags to clothes. More importantly, they have properties that make them desirable for industrial applications such as electronic circuit boards and dental implants. Certain medical procedures also require the use of these metals.

Limited Quantity

If a government wishes to do so, it can order its central bank to print as much money as it can. Metals cannot be produced on a whim like this. Potential sources have to be explored and mined. The ores then need to be refined to eliminate impurities. The resulting metal are then shaped and shipped to the purchasers. They are usually found in faraway countries so the whole process can get very complicated and time-consuming. There is also a finite amount of metals that can be extracted from the earth. These factors combine to make gold exceptionally precious.

storing gold bars

Independence

Although all financial instruments tend to affect each other somehow, metals like gold tend to be quite insulated to the things that are happening at the stock market. This makes them ideal for balancing risks through the diversification of investment portfolios. Many try to convert at least 10% of their investments to valuable metals just to maintain a degree of stability in the face of market movements. Some have converted a much higher percentage to metallic investments after stocks have failed them miserably. Consult a financial adviser to learn more about diversification to gain more confidence in this endeavor.

Resistance to Shocks

Currencies are prone to inflation. A hundred dollar bill today will only be worth a fraction of that next year in terms of purchasing power. Stocks, on the other hand, are prone to slumps due to negative market sentiment. They can be adversely affected by political uncertainly, corporate speculations, and many more. Just a bit of bad news can send traders selling in large volumes such that sudden drops are now common. Gold tends to shrug off noise so the price stays roughly even over time. The same is true with silver and other metals. Those who wish to lessen their exposure to volatility should consider this form of investment.

gold value increasing

Precious Metals IRA

Individual Retirement Accounts or IRAs can be balanced out by bringing valuable metals into the picture. The conversion can usually be done easily with no penalties or taxes getting in the way. Providers of this service can provide specialists to help in navigating through the formalities. The IRA can be converted back to cash once it has reached its full term, allowing investors to enjoy the fruits of their labor. People may also keep the bars and coins in the meantime to let the value grow and then sell them later on. Choose a trusted IRA company for best results.

Create A Smart Retirement Strategy And Invest In Metals

November 14th, 2013

Funding your retirement can be a challenge in today’s economy. With the volatile market fluctuations of real estate, stocks, bonds and traditional 401K plans, it can be hard to know what investment strategies make sense. Funding your retirement wisely is essential to your ability to retire comfortably. With a fully funded retirement plan, you can retire with peace of mind knowing everything you need is obtainable. With the ever changing markets and high risk of many investments, looking into investing in precious metals as a way to finance your retirement is a smart option to explore.

Unlike real estate, paper money, bonds and traditional investments, the prices of precious metals continue to rise. Through political changes, stock market crashes and other turmoil, prices of gold and silver remain steady and high. No matter which markets you are looking to buy and sell in, there is always high demand for metals. In fact, in many markets, the demand for gold and silver far outweigh the ready supply available giving sellers a huge profit when they sell their shares.

Investing in gold and silver can take many forms, so you can select the ones that are right for your retirement needs and strategies. If you are interested in buying bullion or bars, you can buy from reputable sellers who can handle the transfer of the metals and their safe keeping for you. This makes it easy to enter the metals market and allows you to enjoy the security of metals investing without the risk of keeping them in your possession and vulnerable to theft.

If you are interested in investing in coins, the government allows you to buy certain coins for retirement funding purposes. This helps you invest for your future and can help save you money when tax time rolls around. If this strategy interests you, be sure you talk with a financial planner so you buy the right coins and invest wisely.

You can also buy into mining companies. Buying into companies that mine for silver, gold, platinum and other metals is a great way to fund your retirement. Investing in mining companies can be a smart way to fund your retirement years while becoming a stakeholder in a profitable, exciting company.

With the recent break downs of many international economies, investing your money in metals simply makes sense. Regardless of the economic state, metals are always in demand and in short supply. Political strife can often cause the value of a nation’s currency to decline and loose its strength. When you invest in metals, your money is safely tied up in a commodity that is not dependent on any nation’s currency and can hold its value regardless of how the dollar, peso, yen or Euro is doing.

In the wake of corporate scandals and 401k plans plummeting, investing in tangible assets is a great way to ensure you actually have retirement funds once the time comes. Many people have dedicated their entire working lives to corporations and dutifully contributed to their 401k plans only to find them woefully inadequate once they retire. Whether the company collapsed, the stock market shifted or another deciding factor in the value of their funds failed, people are left with far less in their fund than they planned, budgeted for and need to retire. This sad scenario plays out every day and recent economic events and trends indicate it will likely become more and more frequent. Protect yourself and your retirement by investing your money in tangible, physical metals that not only hold their value despite company profits and market conditions, but continue to rise and gain value.

If you are interested in a retirement savings strategy that can withstand the changing economies, political instability and the ever changing real estate market, talk with your financial planner today about investing in metals. With all the options and ways to invest in gold, platinum, silver and other metals, you can find an investment strategy that will help you meet your financial goals. Do not leave your retirement up to the unpredictable market, take control and make investments you can count on no matter what the global economy and market place is doing. Make an appointment to speak with your financial planner and start securing your financial future today. Give yourself the financial freedom you deserve in your retirement years through wise investing and smart savings strategies that include investing in metals. Start today and make your retirement years enjoyable, comfortable, and truly golden through investments in metals like gold, silver and platinum.