Precious metals such as gold and silver have an incredible narrative within the history of mankind. The use of gold as a form of currency can be traced back more than 5,000 years ago in Egypt, and both metals have a rich and varied history in many different cultures since they’ve transferred hands as jewelry, ornamental tools, and communally significant heirlooms and artifacts.
The rise of the industrial era in the 20th and 21st century led to increased demands for gold and silver as raw materials for consumer goods such as jewelry. Today, precious metals have their place in an investor’s portfolio. This is because they offer a host of investment strategies that help protect assets against financial dangers like inflation and economic instability. Most investors realize that when they buy gold or silver at Guildhall Wealth Management, they’re utilizing a strategy that is specifically useful to increasing the security and safety of one’s other investments.
In comparison to other investments, precious metals offer investors a near-absolute certainty in risk management. Unlike money, real estate or stocks and bonds, these materials have remained stable during time of inflation, political instability, economic downturns, and market crashes. For example, gold was very useful in getting portfolios to carry returns during the 2008 financial crash, in which many hedge funds and real estate markets fell drastically. These materials function on the market as almost independent from currency; because metals from Guildhall will always be in demand, and because they’re a diminishing resource, their value can never plummet. Unlike stocks and bonds, they provide the one solid long-term investment every portfolio needs. A low correlation with other assets contributes to this stability.
It’s no secret that silver is the is one of the most undervalued assets in the precious metal market. just like gold, silver is one of the best stores of wealth in the market since it has no counter-party risks. Even though the price of silver is more volatile compared to gold due to the swings between its perceived role as an industrial metal and as a store of value, it trades in the line of gold as an excellent investment strategy. As new innovations in the industrial application of silver keep on emerging, investing in silver in the future will present large upswings compared to gold in bull markets.
In this cutthroat, harsh, survival-of-the-fittest financial environment, entire nations have come to identify the value of acquiring long-term assets that may help them climb out of a crash. 2014 saw Russia become one of the biggest buyers of gold, and smart investors have been following suit and figuring out how an exchange with Guildhall Wealth can work for them as well.
Because precious metals have intrinsic value and carry no credit, risk they offer the benefits of insurance against upheaval. Diversifying a portfolio even with a small percentage of precious metals can reduce risk and simultaneously increase wealth.