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Reasons why you should invest in Precious Metals

These days, many people are investors. Either as part-time hobbyists or educated future planners, a vast number of people regularly make and manage their own investments. This is due to the fact that modern technology has allowed people to be far more educated in finance and have the opportunities to invest at their fingertips. No longer are investors solely people in offices.

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There are, however, fewer modern investors purchasing precious metals. However, there are plenty of reasons why it is definitely still worth purchasing these precious metals today. So, let’s discuss some of the top reasons why you should invest in precious metals.›

What Are Precious Metals?

Precious metals are, by definition, metals that are rare and have a high value due to their scarcity. They are valuable due to their many uses and traditional store of value versus currency. Historically, currencies were often physically made from precious metals, though nowadays that is less the case. Furthermore, when rating precious metals, it is usually a combination of their scarcity versus their uses that drives the value up or down. Gold, for example, is increasingly rare and has uses in electronics, jewelry, and other industries, makes it often rated as one of the most valuable metal assets in the world. 

It’s Easy

The first reason to invest in precious metals we have touched on already: it’s so easy to do. Even an absolute beginner can invest in gold, silver, and other metals without having to learn much. Through simple investment apps on phones, you can invest directly into gold ETFs (exchange-traded funds) on the stock market. This is a way of owning a piece of a chosen precious metal without buying the asset physically. Plus, you’ll be able to invest much smaller amounts over time if you don’t have much working capital to invest.


On a similar note, you could buy certificates of gold ownership online, making you the owner of some gold held in a secure facility elsewhere. However, if you’d rather buy physical gold or other precious metals, you’ll probably need a little more cash upfront, as they are sold in larger quantities this way – in forms like bullions. The downside here is that you’ll need to store the metals safely and it can be hard to re-sell these sorts of quantities. 

They Are Tangible Assets With Actual Value

The next reason is as described in our opening discussion above: they are physical assets with actual uses and therefore have high values. Gold is used in mobile phones and high-end electrics, silver is used in photography, medicine, and solar energy production. Unlike investing in shares of a company, these metals hold actual physical, tangible uses giving them incredible value at almost all times. 

Demand Will Increase

So, precious metals are valuable because they are useful. But, they are also rare. This makes the value increase over time. As they are used more and more, there will be less in circulation, driving prices up for the remaining stores available. With many more uses being discovered for precious metals all the time, the price is set to keep rising. This makes investment in precious metals a traditionally stable and slowly increasing value asset. 

They Are Valuable Everywhere

Some argue that precious metals are the world’s truly universal currency. Due to the fact that they have so many uses and because so many currencies are linked to or minted from precious metals, they hold value pretty much the same wherever you go in the world. A share in an NYSE company may be viewed as a completely non-valuable asset to someone on the other side of the world, but they’ll likely know the value of gold. 

Low Risk of Inflation Damage

Other investments and savings are susceptible to the effects of inflation, precious metals are less so. Precious metals are so widely respected as an investment because they are so rarely affected by any economic upturns or depressions. This has been evidenced during the pandemic of 2020, as more and more investors have placed their finances into precious metals for stability while other assets tumbled. It seems that no matter whether a currency increases or inflation increases rendering your savings worthless, gold, for example, will always hold its own and retain its value. 

As you can see, there are plenty of reasons to consider investing in precious metals. They appreciate in value over time and they tend to beat other downturns in the financial markets. Plus, it’s never been easier than now to begin your journey into investing. Give precious metal investing a go today.


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