- Posted in: IRA Solutions
At Global Monetary Reserve, one of the major discussions we often have with clients is why they should be investing in precious metals over more traditional investment vehicles, such as stocks, bonds, or even simple savings accounts. The issue is that this isn’t a black or white question: a well diversified portfolio that includes precious metals shouldn’t just have precious metals. Putting one’s eggs all in one basket is never a good idea, even if that basket is made of gold! However, there are a number of good reasons why you should be investing in the physical market over the paper one.
During the Recession, the paper markets performance has been sketchy at best; while currently over 15,000 on the Dow-Jones, the market has ranged from just over 6,500 at the depths to over 15,650 at the peak. That’s a huge range that wasn’t all upwards – meaning that at some point, the market crash lost money for everybody who was invested in it from the beginning of the century. On the other side of that, gold’s range has been from as little as $260 in 2000 to a peak of over $1,910 in 2011. While not at a peak currently, gold’s been on an upward climb even through market corrections: at $1,400, gold has still made long term investors almost 540% – a profit margin that is almost unheard of in today’s investment world.
Even more important than how the precious metals have done in the past is how they’re looking to do in the future. With the concerns of an impending conflict in Syria and domestic civil unrest due to the poorly performing economy, precious metals can only move up. One of the best qualities of both gold and silver is that it performs better than paper during times of crisis and pressure: as both insurance and and a vehicle for profit, when the going gets tough, gold and silver get going. Several analysts, including the Wall Street Journal, have predicted that as more people move into gold to combat the economy, the price of gold will continue to move up, causing more and more people to flock to it. Better still, in the last decade, gold has moved from a niche investment to a major method of investment advisers to hedge wealth on long term portfolios – this has further increased the demand for the metals. This combined with the increased global demand from China and India has secured gold and silver as the premiere investment for the Recession-era market.
The best way to begin investing in precious metals is with the help of an experienced adviser who can assist you with the right way to purchase bullion, semi-numismatics, and rare coins. Global Monetary Reserve has decades of combined experience along with a unique market perspective and the ability to handle clients of all sizes, from entry level investors to multi-national conglomerates looking to buy in bulk. Give GMR a call today at 1 (877) 795-9585 to begin building your precious metals portfolio!