In a world which more than ever is governed by unpredictability and the whims of fickle fate, there is not much that is set in stone or which you can bet your money upon. The marketplace for bullion and precious metal is often the exception. Gold and other precious metals tend to not only hold but increase their value as time ticks on. They have intrinsic value and worth, making them a sound investment. The team of experts at an industry-leading coin and precious metals company GSI Exchange is always keen to introduce new clients to the marketplace. However, by the same token, they are firm believers in the old adage that only fools rush in where angels fear to tread. With this in mind, they share three things to consider before investing in bullion or precious metals.
Is now a good time to buy?
Experts at GSI Exchange share that the company is more than aware that buying bullion or precious metals is a big commitment and investment. Naturally, customers want to strike while the iron’s hot. Financial advisors believe a small part of one’s portfolio should be allocated to precious metals in stable periods. With the volatile situation of the global economy due to the COVID-19 pandemic, people are wary about investing. However, precious metals can hedge against inflation and add stability to retirement accounts. In short, bullion and precious metals can still be a good investment by a long shot.
Will you make a significant return?
GSI Exchange opines that precious physical metals such as gold and silver are financial insurance against inflation. They provide the ability to “lock-in” a specific rate. Nothing in life is guaranteed, but in their extensive experience, the company has observed that return on investment is satisfactory when it comes to precious metals.
What are the drawbacks?
Perhaps the most critical drawback of investing in precious metals is when purchasing physical products, you need to ensure you have the necessary storage and can meet the insurance costs. One way around this is investing in stocks or bonds. Another drawback to consider is that investing in physical metals instead of dividend-rich stock only allows you to generate income when you sell the metals. However, potential investors should remember that nothing in life is completely risk-free; therefore, one must consider their financial goals and be prudent while investing in precious metals or any other instrument.