Precious metals are a long-term investment because they maintain their value over time. Inflation may cause the price of gold and silver to rise, but they will never be worth less than what you paid for them. This makes them a good option for people looking to invest in the future. Precious metals are rare metals that have a high economic value.
They are valuable because they are scarce, useful for industrial processes, or have investment properties that make them a good store of value. Notable precious metals include gold, silver, platinum, and palladium. Here's a guide to investing in precious metals. We'll cover what they are; the advantages, disadvantages and risks of investing in them; and some precious metal investments to consider.
If you're not sure where to store your precious metals, Allegiance Gold can help point you in the right direction. If savers have the option of holding gold that keeps up with inflation and maintains global purchasing power over the long term, even in the event of a disaster, or maintaining a fiat currency that currently pays negative real interest rates (rates that don't keep up with inflation and therefore lose purchasing power), gold suddenly becomes quite attractive. Advantages include the ability of physical gold to track the price of the precious metal and the potential for gold stocks and ETFs to perform better. Its price at any given time is determined in part by public emotions (economic fear or confidence), partly by real interest rates (since cash that generates real profits in a bank may be more desirable than holding gold without generating cash flow), partly by inflation or perceived future inflation (against which gold maintains its value very well), partly by energy costs and other costs associated with its extraction (which may affect supply and demand), etc.