Many potential investors are unclear as to the difference between liquid and non-liquid assets. Simply put, it takes time for an investor to assign a monetary value and sell off non-liquid assets, while liquid assets are easily converted back into cash. Houses, property, and automobiles are the most common examples of non-liquid assets, as they do not have a “set” value and may require further investments (repairs or improvements) before they can be sold for their highest asking price.
Gold and silver are liquid assets because they may easily be converted to cash equivalents. Investors usually seek to have a substantial portion of their portfolio dedicated to liquid assets, including stocks, bonds, foreign currency holdings, and precious metals.
Gold is by far the most common metal for both private and corporate investors, although silver has become more popular in recent years. Other precious metal options include platinum and palladium, all of which may be easily converted into cash or used as fair tender to settle debts (making them an attractive investment option).
However, just because these precious metals are easily turned into cash does not mean they hold one constant value. The prices of gold and silver bullion change just as any other commodity, and it is wise to keep a diverse portfolio to protect your future. In addition, many investors will overpay when buying gold and silver in Texas because they do not know how to estimate precious metal values.
The precious metal dealers at Global Monetary Reserve will be happy to answer any investment questions you may have. Call us at 1 (877) 795-9585 or fill out the quick contact form on this page to get started on your portfolio today.