Gold and Silver: Incorporating Precious Metals into a Diversified Portfolio

Gold and Silver: Incorporating Precious Metals into a Diversified Portfolio

As astute investment enthusiasts age 50 and above, your primary aim is to diversify your portfolios to minimize risk effectively. One excellent strategy to embrace is incorporating precious metals, primarily gold and silver, into your portfolio. The stability and time-tested reliability of precious metal assets make them a preferential choice for seasoned investors.

Adding gold and silver to your portfolio

Many economic experts espouse that investing in gold can serve as a hedge against volatility and inflation, while silver is typically associated with industrial growth. First and foremost, understanding how to add these precious assets to your portfolio is vital.  The crucial steps include analyzing each metal’s market dynamics, choosing the correct form to invest in, and determining the right time to purchase.  A financial advisor, like those at Good Life Asset Strategies, can help you through this process to determine the best options based on your financial objectives and risk tolerance.

Types of precious metal investments

A precious metal dealer can sell you gold and silver in coins, bars, or bullion, but buyer beware. Remember, precious metal dealers are salesmen. They may not be looking out for your best interests when selling their products.  Do your homework before dealing in the metal itself, and shop around for the best deals. Besides physical holdings, you might also consider investing in exchange-traded funds (ETFs), mutual funds, futures contracts, or mining industry stocks. Realize that some ETFs are not backed by the actual metal itself, so working with an investment advisor may be appropriate.

How do gold and silver fit into your long-term strategy? 

Like any other investment, investing in gold and silver requires a well-calibrated balance and should align with your long-term investment strategy. It’s a good idea to own a diversified array of investments. By adding precious metals to your investment portfolio, you can enhance your portfolio’s resilience and potentially augment its performance over time.

Schedule a consultation with one of the expert investment and financial advisors at Good Life Asset Strategies to discuss if adding precious metals to your portfolio is a good fit for your long-term wealth management strategies. 

The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.