If you want to invest money, then precious metals like gold and silver are a great option because prices are more likely to increase. Yes, there are some dips here and there, but in the long term, they do rise and provide you with substantial returns.
Want other good reasons to invest? Well, gold and silver are real money, and you can have them physically unlike digital money, which you only have virtually. So investing in gold and solve means that you have solid assets to back you up; assets you can actually hold in your hands to support you.
Are there are any risks?
Mostly not, so even if your risk appetite is less, you can still invest in precious metals. Generally, gold and silver prices move in a direction that is away from the rest of the market. So if there is a drop, you can expect the prices to rise. By investing in gold, you may not be completely eliminating the risks, but you are diversifying your investments and that helps.
If you consider the long term, gold and silver tend to become more valuable and so prices generally rise.
What’s the current outlook?
Gold prices have risen in the recent past due to political turmoils in the United States and a missile test, conducted by North Korea. However, what has probably had the most impact is the global cyber attack, which has significantly driven demand upwards. The US dollar dropped and so gold became cheaper for other currency holders. Many investors are no turning back to gold because it is a safe haven.
Market analysts believe that gold investment is going to rise in the days to come because Trump administration can be unpredictable, the US data is weakening, and North Korea wants to perform more tests.
Considering the figures, gold prices have increased by 2.06%. Silver has gone up by 1.24%. Other metals like copper and platinum also experienced rises.
What tips can you make use of?
If you are just a beginner in the investing world, here are some tips to help you out.
- Always buy real gold and silver; this means you should purchase coins or bars, which are also referred to as bullion. Whatever you purchase, lock it up and store it in a secure place. A safe deposit at your bank or a private safe in your home are usually good places. If desired, you can store gold with reputed bullion firms as well.
- Gold is an investment for the long term, so you don’t have to rush yourself. Buy it only when you need it. Like any other investment option, gold and silver prices also fluctuate. If they are too high right now, then maybe you can wait until they fall down again, that is if they aren’t expected to rise further.
- Balance your portfolio well if you want maximum returns. As a rule of the thumb, precious investments should take around 30% of your portfolio.
- Seek professional advice from people who are already doing this.