Is buying gold or silver a good move for the investor? Throughout history, precious metals like gold and silver have been considered valuable as the world’s primary currency. Nations rise and fall, wars are won and lost, and currencies come and go, but the value of gold and silver remains.
Not only are these precious metals portfolio diversifiers for the investor but they’re also considered excellent insurance policies in today’s chaotic world. They can serve as a hedge against economic challenges by ensuring the retention of purchasing power.
The value of gold and silver is derived almost entirely from supply and demand conditions, so prices fluctuate. Yet, over long periods, precious metals consistently increase in value. In addition, these precious metals tend to move differently than other asset classes, especially stocks. They play by separate rules and don’t tend to go down with the stock market.
It’s worth noting that gold and other precious metals have their limitations. They don’t generate income as they do not yield dividends or interest. Moreover, storage and security can be an issue.
Individuals, especially those above the age of 50, should consider allocating a portion of their assets to gold and silver as a layer of protection during periods of economic uncertainty. Most financial experts recommend anywhere between 5% and 20% of your portfolio, depending on your individual circumstances. Schedule a consultation with one of the Good Life Asset Strategies financial advisors to learn which investment and estate planning strategies are best for you.
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.
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