When people think of investing, they usually picture the complex and often confusing world of stocks, hedge funds, and betting markets. But the reality is much different than what is presented in movies.
Sure, you could make your investments in cash by buying stocks in a company and hoping they succeed, but it is still a risk that you are betting on at the end of the day. If recent events have shown us anything is that nothing is for sure when it comes to stocks.
Namely, just last month, a dedicated group of internet users on the social media platform Reddit drove up the video game retailer GameStop’s stock prices. This was made possible by the Wall Street brokers who bet against the company’s success because of the rise of online downloads and video game libraries. The prices of the stocks became so low that many people could buy a lot of them and artificially drive the demand, thus raising the prices again.
The actual mechanisms behind how this could have happened are much more complicated than covered in this article. But still, the possibility that you could play with investments to increase or decrease one company’s value can be a scary one. Read more about this wild scandal at this link https://www.nytimes.com/2021/01/27/business/gamestop-wall-street-bets.html
However, the GameStop scandal is only one in a long list of cautionary tales against investing in the wrong commodities. This was preceded by the drastic price drop in oil in April of last year when the pandemic started. Since no one was allowed to go anywhere because of the stay-at-home orders, the oil demand declined dramatically, getting its price in the negatives and forcing its producers to pay consumers to get rid of the surplus.
And who could forget when the housing bubble burst in 2008 and triggered one of the worst recessions in recent history, the effects of which we are still feeling today. Real estate was supposed to be a substantial investment into people’s futures, but it turned out to be their undoing.
Despite all of these accounts, not everything is so bleak. We are not here to discourage you from investing ever again and keeping your savings stagnant in a bank. Quite the opposite, we want to inform you about a better, smarter way to invest that will protect you and your assets for years to come regardless of the global political and economic situation.
Precious metals – the right choice
If any of your ancestors were immigrants, your family might hold on to a piece of jewelry brought over from the so-called “Old Country.” While these family heirlooms have sentimental value to them, you have probably wondered why someone would bring jewelry on such a long and demanding trip, especially when taking their entire life with them.
Well, it certainly is not because your great-grandma was vain and wanted to get off the boat in her best earrings and necklace. The reason why so many people in danger, such as refugees, take their jewelry with them is precise because these items never lose value.
From the examples we provided, almost all currencies and commodities proclaimed to be essential for people’s lives crashed at some point, proving their fallibility. Unlike them, precious metals have never met this fate.
This is mostly in part due to the historical establishment of these gems as currency. Namely, many of our modern monetary currencies were valued in relation to elements such as gold or silver. That is no longer the case anymore, but they still keep their value and are essential to keeping the economy balanced.
Still, the process of investing in these elements is not as simple as buying gold necklaces that you can keep in your jewelry box. In fact, in many ways, it is similar to investing in stocks, except the commodities you are investing in are much more reliable. You can start this process through investment companies such as Birch Gold Group, a well-reviewed company. You can check out this review of some of their work. Their stellar reputation speaks for themselves.
Namely, the benefit of investing your savings into precious metals such as silver and gold, or the rarer platinum and palladium, is that they are protected from inflation. Inflation is essentially what happened with the GameStop stocks, an artificial rise in demand to raise its stock prices. However, if this had happened, say, to the US dollar, it would have rendered cash meaningless and left you paying thousands for a loaf of bread.
Most people investing in gold, for example, choose to buy it in coins which are then insured and kept safe either by themselves or the companies that can provide storage and custodians. You could also purchase shares of exchange-traded funds, which then invest in bullion and the gold industry at large. Lastly, you can decide on contracts such as options and futures, which allow you to buy or sell this element for a specific price in a limited amount of time.
A quick review
Whatever choice you make, you must consider it carefully before finalizing the decision. It is easy to get caught up in the euphoria of investing and potentially multiplying your savings, but there is a risk with every reward. That is why we recommend consulting with professionals who can advise you and guide you on your road to wealth. Click on this link to learn more about it https://www.forbes.com/sites/lizfrazierpeck/2017/08/02/do-you-need-an-investment-advisor-ask-yourself-these-5-questions/
We hope that you have learned a lot about the benefits of putting your savings towards investments in precious metals. Although the prospect can be daunting, you will find the portfolio you need in no time with the right guidance!