Why Precious Metals?
There are a variety of reasons why you should strongly consider owning physical gold and silver as a part of your investment portfolio. Precious Metals are among the very few assets that you can physically own and have in your possession. Unlike paper investments such as stocks, physical possession of gold and silver is possible.
Gold and silver are safe-haven assets because owning gold and silver can reduce the overall risk in an investment portfolio. Historically, precious metals such as gold and silver have performed very well when the stock market corrects or crashes.
What are the Benefits of Owning Gold & Silver?
Diversification
Diversification is necessary to achieve a balanced investment portfolio. It allows the negative performance of some investments to be cushioned by the positive performance of others. Diversifying your assets among stocks, bonds, cash, and precious metals is a sound strategy. Further diversification within the tangible assets sector can secure even more substantial benefits. In comparison to gold, all major currencies have lost ground over the past ten years. Precious metals have outperformed every major investment index over the same period.
Hedge Against Inflation
Gold and silver can be a powerful weapon against inflation. Most people recognize that the buying power of paper money has dramatically decreased over time. Paper currencies will most likely continue to devalue in the future as the Fed continues to print more money during times of economic uncertainty. Gold and silver can be a powerful hedge against inflation and help preserve your purchasing power. Remember, unlike almost all paper money, gold and silver have never been worth zero.
Privacy
What you invest your money in is nobody’s business but your own. When you purchase gold and silver for delivery to your home, your purchases are entirely private. Having gold and silver in your possession means no government or financial institution is involved in your private financial decisions.
Liquidity
Gold and silver are some of the most liquid assets you can own. Owning physical metals always allows you to have something of value in your hands and gives you the ability to sell your gold and silver without having to go through the same hurdles as other investments. And gold and silver coins and bars are valued world-wide and can be sold or traded almost anywhere.
Growth Potential
Gold and silver cannot be printed or created on a computer – they are finite resources. Because the amount of gold and silver are limited, they have the ability to grow in value. In the past, gold and silver have provided significant returns to investors. Today, the prices of gold and silver are at relatively low levels. Precious metals are a desirable investment opportunity for many people, because compared to savings accounts and other low-yielding investments, there can be an opportunity for greater growth potential.
Supply & Demand
The demand for physical gold and silver from central banks, governments, financial institutions, and industry are continuing to increase at levels not seen before. As political and economic uncertainty continues to grow, the demand for the safety and security offered by physical precious metals will only continue to rise. As technology continues to evolve, the need for gold and silver as industrial metals will also continue to increase. The demand for precious metals will continue to rise, not only from nations and investors but also from the numerous industries that use the metals in their manufacturing every day. With miners avoiding new projects amid global economic uncertainty, the prices of gold and silver could spike significantly as the available supply continues to decrease.
What are the Benefits of Owning Gold & Silver
Diversification
Diversification is necessary to achieve a balanced investment portfolio. It allows the negative performance of some investments to be cushioned by the positive performance of others. Diversifying your assets among stocks, bonds, cash, and precious metals is a sound strategy. Further diversification within the tangible assets sector can secure even more substantial benefits. In comparison to gold, all major currencies have lost ground over the past ten years. Precious metals have outperformed every major investment index over the same period.
Hedge Against Inflation
Gold and silver can be a powerful weapon against inflation. Most people recognize that the buying power of paper money has dramatically decreased over time. Paper currencies will most likely continue to devalue in the future as the Fed continues to print more money during times of economic uncertainty. Gold and silver can be a powerful hedge against inflation and help preserve your purchasing power. Remember, unlike almost all paper money, gold and silver have never been worth zero.
Growth Potential
Gold and silver cannot be printed or created on a computer – they are finite resources. Because the amount of gold and silver are limited, they have the ability to grow in value. In the past, gold and silver have provided significant returns to investors. Today, the prices of gold and silver are at relatively low levels. Precious metals are a desirable investment opportunity for many people, because compared to savings accounts and other low-yielding investments, there can be an opportunity for greater growth potential.
Privacy
What you invest your money in is nobody’s business but your own. When you purchase gold and silver for delivery to your home, your purchases are entirely private. Having gold and silver in your possession means no government or financial institution is involved in your private financial decisions.
Liquidity
Gold and silver are some of the most liquid assets you can own. Owning physical metals always allows you to have something of value in your hands and gives you the ability to sell your gold and silver without having to go through the same hurdles as other investments. And gold and silver coins and bars are valued world-wide and can be sold or traded almost anywhere.
Supply & Demand
The demand for physical gold and silver from central banks, governments, financial institutions, and industry are continuing to increase at levels not seen before. As political and economic uncertainty continues to grow, the demand for the safety and security offered by physical precious metals will only continue to rise. As technology continues to evolve, the need for gold and silver as industrial metals will also continue to increase. The demand for precious metals will continue to rise, not only from nations and investors but also from the numerous industries that use the metals in their manufacturing every day. With miners avoiding new projects amid global economic uncertainty, the prices of gold and silver could spike significantly as the available supply continues to decrease.
Types of Precious Metals
Gold, silver, platinum, and palladium are precious metals. All of these metals are available to be purchased for delivery or placed in a Precious Metals IRA. Each of these metals has its benefits. Here is a breakdown of each of these metals.
GOLD
Gold has been a highly sought-after symbol of wealth since the beginning of recorded history, often used in jewelry, art, coinage and many other applications. Because it is malleable, resistant to corrosion and conductive of electricity, gold also has practical uses in numerous industries. Gold is considered an excellent long-term investment. With the U.S. dollar losing its place in the global economy, gold can offer benefits that other investments cannot. According to Alan Greenspan – “Gold, unlike all other commodities, is a currency, and the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating.”
SILVER
Silver is possibly the oldest mass-produced form of coinage. Silver has been used as a coinage metal since the times of the Greeks. Silver is a soft, white, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. Because of its value in terms of collectability and its many uses as an industrial metal, the dual demand for silver makes silver a very desirable product.
PLATINUM AND PALLADIUM
Platinum and palladium are rare precious metals used in many of the same ways as gold and silver. Platinum and palladium are both known for their excellent catalytic properties and are used heavily for industrial processes, as well as the manufacturing of jewelry and numerous other items.
Bullion, Numismatic & Semi-Numismatic
What’s the difference?
When investing in precious metal, you have three primary types to choose from: bullion, numismatic, and semi-numismatic. There are unique benefits to all three types, depending on your goals, but there are some fundamental differences between them:
Bullion coins and bars are usually made from gold and silver and may also be available in platinum and palladium. They are generally minted in weights that are fractions of one troy ounce to fit a variety of budgets.
Bullion products command the lowest premium in the marketplace as compared to the spot price of the underlying precious metal. Bullion coins will very rarely ever have a value that is much greater than the current spot price of the metal from which they are struck.
Bullion products are also produced in much higher quantities when compared to either Numismatic or Semi-Numismatic coins. Their abundance and consistent availability in the market also contribute to the lower prices associated with bullion products.
Numismatic coins are those minted prior to 1933. Numismatic coins have a value beyond the materials they are made from. This numismatic or collectible value may be due to a coin’s age, condition, rarity, design, historical significance or most often a combination of these factors.
Numismatic coins will often receive a condition ‘grade’ from a professional coin grading service. But, just like a bullion coin, numismatic coins are also valued for the content of their precious metal.
Numismatic coins carry the highest premiums of all coins because their value does not solely rely on their metal content, many investors are attracted to the opportunity to have more than one factor determining the value of their coins.
Semi-numismatic coins are coins that share both bullion and numismatic traits. Generally, they are bullion coins that have a limited mintage (total number produced) and are attractive to collectors due to their design, special features, form factor, or overall series popularity.
During its production run at the mint, a semi-numismatic coin can be purchased at a reasonable premium over the spot price of the metal. It might be slightly higher than a pure bullion coin, but not by too much.
However, once the production run is over and the mint sells out of inventory the premium over spot bumps up. As the inventory at dealers dwindles, the premium rises more.
Many investors and collectors believe that a semi-numismatic coin is the best of both worlds. It provides all the benefits of owning gold or silver bullion while providing the upside of investment appreciation independent of the metals spot price.
We all know the economy isn’t a machine – it’s organic and constantly changing. It grows and expands or shrinks and falls due to many factors. With all the turbulence in the world today, the record highs of the stock market could soon experience a significant, long-overdue correction. Don’t fail to get prepared for the inevitable economic change that is coming. Now is the time to take a more defensive position and protect your hard-earned retirement and savings from loss.
To learn more about protecting your financial future with investments in gold, silver, platinum and palladium, take the first step today: Speak to an Wilshire Capital expert toll-free at (833) 940-2086.
When investing in precious metal, you have three primary types to choose from: bullion, numismatic, and semi-numismatic. There are unique benefits to all three types, depending on your goals, but there are some fundamental differences between them:
Bullion coins and bars are usually made from gold and silver and may also be available in platinum and palladium. They are generally minted in weights that are fractions of one troy ounce to fit a variety of budgets.
Bullion products command the lowest premium in the marketplace as compared to the spot price of the underlying precious metal. Bullion coins will very rarely ever have a value that is much greater than the current spot price of the metal from which they are struck.
Bullion products are also produced in much higher quantities when compared to either Numismatic or Semi-Numismatic coins. Their abundance and consistent availability in the market also contribute to the lower prices associated with bullion products.
Numismatic coins are those minted prior to 1933. Numismatic coins have a value beyond the materials they are made from. This numismatic or collectible value may be due to a coin’s age, condition, rarity, design, historical significance or most often a combination of these factors.
Numismatic coins will often receive a condition ‘grade’ from a professional coin grading service. But, just like a bullion coin, numismatic coins are also valued for the content of their precious metal.
Numismatic coins carry the highest premiums of all coins because their value does not solely rely on their metal content, many investors are attracted to the opportunity to have more than one factor determining the value of their coins.
Semi-numismatic coins are coins that share both bullion and numismatic traits. Generally, they are bullion coins that have a limited mintage (total number produced) and are attractive to collectors due to their design, special features, form factor, or overall series popularity.
During its production run at the mint, a semi-numismatic coin can be purchased at a reasonable premium over the spot price of the metal. It might be slightly higher than a pure bullion coin, but not by too much.
However, once the production run is over and the mint sells out of inventory the premium over spot bumps up. As the inventory at dealers dwindles, the premium rises more.
Many investors and collectors believe that a semi-numismatic coin is the best of both worlds. It provides all the benefits of owning gold or silver bullion while providing the upside of investment appreciation independent of the metals spot price.
We all know the economy isn’t a machine – it’s organic and constantly changing. It grows and expands or shrinks and falls due to many factors. With all the turbulence in the world today, the record highs of the stock market could soon experience a significant, long-overdue correction. Don’t fail to get prepared for the inevitable economic change that is coming. Now is the time to take a more defensive position and protect your hard-earned retirement and savings from loss.
To learn more about protecting your financial future with investments in gold, silver, platinum and palladium, take the first step today: Speak to an Wilshire Capital expert toll-free at (833) 940-2086.