Investing in Gold and Silver to Hedge against Inflation and Store Wealth

There are significant advantages to investing in gold and silver that are unlike any other trading options available. Silver and gold bars have quickly emerged as two of the most popular ways to invest because of their convenience to store, and because of lightweight transportability. Because both gold and silver bars are sold in varying sizes, investors can easily secure a large amount of wealth in a relatively small amount of storage space. Readily accepted in the resale market, gold and silver bars are extremely easy to convert into any currency.

Demand Is Greater Than Supply
In the last few years, gold mine production has typically brought in over 75 million ounces each year, when combined with recycled gold that together totaled well over 125 million ounces. Silver production from worldwide mines produced nearly three-quarters of the total 1 billion ounces available when combined with recycled silver. Although these amounts sound huge, there was even greater demand than could be met. As a result, the spot price of both gold and silver continue to soar.

Many individuals and companies investing in gold and silver allocate a certain percentage of their portfolio to gain a significant advantage with its diversification. By dedicating nearly 20% of the total investment strategy, both gold and silver investments have proven to show positive results for years. Although past performance cannot be used as an indicator of future results, the spot price of precious metals seem bright in the upcoming years.

Precious Metal Stability
One of the most crucial factors that govern investment decisions on whether purchasing silver and gold is a wise profit building strategy is the stability of the precious metals in the marketplace. Investing in gold and silver bullion coins and bars is the most traditional way of capitalizing on profits. The worth of these assets is determined by their gold or silver spot price each day. Another avenue for investing in gold and silver is to acquire numismatic coins and/or currency, where the value is determined not just by the spot price of the precious metal, but by the value of their rarity and demand in the market.

Buying physical asset gold and silver from a reputable dealer is crucial in ensuring that the purchase price is competitive. The spot price of both gold and silver are determined by the current demand price of 100 ounces or more. When purchasing small quantities of 1 ounce, half-ounce or less, there will be a specific premium to be paid to acquire small amounts of gold or silver. Competitive pricing should include a reasonable premium, which is usually found in a highly reputable online dealer or brick-and-mortar store.

Investing in gold and silver is a perfect way to hedge against inflation. With the devolution of currencies around the world, both precious metals provide a safeguard during any type of economic crisis. Gold and silver can be easily converted into cash, and used to barter for any commodity or supplies needed. Both precious metals are accepted around the world, and are easy to transport, or hand down to the next generation.

Investing in Gold and Silver to Hedge against Inflation and Store Wealth
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