Trade precious metals online have long served as and insurance against economic uncertainty, while investors today look for them as diversification tools.
Silver is used extensively in high-tech consumer electronics such as microchips and solar panel cells, as well as being an important raw material in clean energy technologies like solid oxide and PEM electrolysers.
Physical bullion products such as gold bars or American eagle coins are available for purchase through Morgan Stanley brokerage accounts or self-directed retirement accounts (IRAs), while there are also exchange-traded funds which offer leveraged exposure.
Safe-Haven against Inflation
Precious metals have historically been seen as safe-haven assets during times of economic instability due to their longevity as money and their ability to preserve purchasing power over time – this feature being especially significant today with quantitative easing driving inflation higher and higher.
Physical gold and silver provide no counterparty risk compared to paper-based financial instruments, making them easier than digital investments for those concerned about cybersecurity. Furthermore, as these precious metals can easily be transferred between family members abroad – this makes owning physical precious metals the superior option when considering retirement savings options. It is important that when making any significant decisions relating to retirement savings you take your investment time-horizon into account so you can determine the optimal ratio between precious metals and other investments for your portfolio mix.
Store of Value
Gold and silver have long been recognized as reliable stores of value, providing long-term solutions with lasting purchasing power.
As opposed to stocks and bonds, physical metals don’t involve counterparty risk – meaning you can sell your bullion without paying fees to anyone or worrying about theft or loss.
Precious metals make an excellent retirement portfolio investment because, unlike other investment assets, they can easily be moved across borders with minimal fuss – just like property or bank accounts. This makes them an excellent addition to your retirement portfolio.
Portable Form of Wealth
Contrary to stocks, real estate, and other retirement investments that require long-term commitments with steep penalties for withdrawal, precious metals provide instant liquidity – just like trading stocks! You can buy or sell physical bullion quickly with just a few clicks.
Gold and silver both hold onto their purchasing power over the long-term, which paper currencies cannot do. As such, many have turned to precious metals as an insurance against currency devaluation or economic collapse.
Precious Metals IRAs provide an efficient tax-deferred savings vehicle for those interested in owning precious metals without compromising liquidity, and often accept bullion coins and bars that meet purity standards as investments. Gold and silver are popular choices, while platinum offers superior industrial applications with higher growth rates than the rest of precious metals.
Privacy
Contrary to stocks and real estate investments, precious metals don’t involve counterparty risk; when purchasing physical bullion coins you own it outright and can keep it securely within your possession (for example in a safe deposit box or personal safe).
Investors looking for diversification and growth potential may also invest in shares of precious metal mining or refining companies; mutual funds; exchange-traded funds (ETFs); or futures contracts as these products offer indirect investments that still offer diversification.
Spratt Physical Bullion Trusts offer investors easy and tax-efficient exposure to precious metals through closed-end funds that redeem for physical bullion, eliminating storage fees and decreasing counterparty risk. Furthermore, U.S. residents may find these trusts tax-efficient; please consult your tax advisor before investing.
Accessibility
Precious metals differ from stocks and bonds in that their value does not fluctuate with fluctuations in the stock market; typically retaining their intrinsic worth. Shark Tank investor Kevin O’Leary recommends allocating at least 5% to precious metals as part of an all-weather portfolio.
Conclusion
There are various ways to invest in precious metals, from purchasing physical bullion such as coins and bars, or investing in specific commodity ETFs like platinum ETFs, to investing in gold ETFs, futures contracts or mining company shares. Direct ownership requires special storage arrangements as it poses counterparty risk; to reduce this risk further investors can buy unallocated precious metals which will then be held by banks on behalf of their owning investor.
