Diversify Your Portfolio with a Precious Metals Allocation

If someone asks you about investing, you don’t necessarily think precious metals right off the bat. More familiar and traditional investments include stocks, bonds, 401k funds, IRAs and certificates of deposit. So why should you consider investing in precious metals? Three words: Safe, Secure, Diversify.

diversify with gold silver coins

 

Debunking Precious Metal Myths

I recently came across this comment on social media when someone posted about investing, buying and selling silver.

There’s no guarantee in gold investments. There’s no guarantee in any investments, but the rate of return historically isn’t reliable enough for me to tie up money there. Too risky, too volatile, and no possible way of predicting future performance.”

This person is correct, there are no guarantees in any investments. Investing in precious metals like silver, gold and platinum are the most popular and oldest hedge investments. Historically, when inflation rises, so does the value of precious metals. So that kind of investment will help you hedge against future inflation. Before there was paper currency or stocks and bonds, there was gold and silver. Even in today’s market, gold and silver are valued for what they are and not just what they represent.

Diversify Your Portfolio

At GMRgold we are not suggesting that all of your investments should be tied up in precious metals. In fact, a healthy portfolio will have a mix of both traditional and precious metals investments. By adding precious metals to a diversified stock-bond portfolio the portfolio efficiency can increase. This lowers the portfolio risk while the return stays the same or increases in comparison to a diversified portfolio without any precious metals allocation.

If you’re not sure if precious metals investing is right for you, we have experts on staff who will evaluate your current portfolio and provide recommendations. We can also guide you through the process of setting up a precious metals IRA and buying or selling IRA approved bullion.