Choosing which precious metal to invest in is one of the most difficult decisions for first-time investors. There are so many different metals, each with its own market and investment characteristics, that choosing the best metal is difficult. Additionally, there are different forms of precious metal bullion, further complicating matters.
Precious Metal Types
You can use this guide to help you select the right investment for your personal portfolio by understanding the different types of precious metals.
A valuable metal like gold and silver exceeds other commodities historically used for those purposes primarily due to the inherent properties they exhibit: scarcity, durability, fungibility, divisibility, portability, easy storage, and, most importantly, irreplicability. Having these unique characteristics makes them the perfect exchange mediums and value stores, enabling human economic development to reach new heights beyond bartering of consumer goods.
Thousands of years have passed since gold has been used as a store of value by investors. Generally speaking, gold tends to hold its value well during economic slowdowns, and can withstand major recessions quite well. Comparatively to cash investments, gold is an excellent hedge during inflationary times. Some new investors may find the cost of buying significant quantities of gold prohibitive even though gold is a great investment.
In terms of popularity as an investment metal, silver is a close second to gold. In comparison to gold, silver is relatively inexpensive, which makes it easier to start investing with a small amount of money and build a portfolio over time by making smaller investments periodically. In addition to its widespread industrial use, silver’s price is also supported by the fast-growing solar energy industry.
In spite of its advantages, silver’s lower price compared to other precious metals makes storing it more difficult. An ounce of gold, platinum, or palladium is worth many times as much as an ounce of silver, so the amount of storage space needed for silver will be much bigger than the amount needed for the other precious metals.
Precious metals: Why Invest Now?
Since President Gerald Ford allowed every American to purchase gold once again in 1974, gold has been the most valuable asset. Many skeptics point out that the United States and the vast majority of nations in the world use fiat currency rather than precious metals-backed currency. We can see, however, that this widespread adoption of paper currencies subject to inflation and not backed by anything led to the extremely volatile economic climate in which we live and struggle now. Global central banks are printing money like there is no tomorrow, and this artificial expansion of the money supply logically results in the devaluation of fiat currencies.
Consequently, consumer prices rise as well as resources are misallocated, causing economic consequences that can lead to societal collapse. The rational next step for those who wish to prepare for the inevitable decline in the value of the dollar and preserve their wealth is to invest in gold and silver.
How Do I Invest in Precious Metals?
You need to seek out a reputable precious metals dealer with years of attested industry experience before you can begin the process of a precious metals investment. With over 40 years of professional expertise and excellent customer service, Dupre Coins offers a vast inventory of bullion and other precious metals.
To learn more about how precious metals can preserve your wealth, contact us today!