Why Invest In Precious Metals
For a millennium precious metals have been recognized as a true store of wealth. Originally gold and silver coins were a form of currency. Now due to its rarity gold and silver are considered too expensive to be modern-day currencies, however precious metals form a store of wealth and often is considered by investors as an essential hedge against economic calamity.
In the last decade Central Banks in a coordinated effort globally algonside government treasuries have been printing money as governments rack up uncontrollable amounts of debt and unfunded liabilities ( pensions, welfare, government programs ) without any intention of repayment. This has caused asset bubbles across the board of mainstream asset classes. What happens when all of this comes to an end and stock markets, property, currencies and sovereign debt devalue considerably. Where do investors put their money and keep it safe?
During this same time period Central Banks globally have been net buying an unprecedented amount of physical gold since year 2010 for every single year into year 2020, the largest gold buying spree in modern history, re-classifying gold in the financial system as a tier-one-asset in year 2019.
Precious metals (in particular Gold) have proven time and time again to be an amazing hedge against economic calamity. Gold has no counter-party liability and is an asset that can be held by an individual that is free from debt and transparently priced on global exchanges. Precious metals are liquid and can be exchanged quickly and easily sold in the event an investor needs cash as opposed to other investments.
The team at Auctus has for years recognized the opportunity of investing in precious metals as both a means of insurance in times of economic calamity and then as a means of achieving an amazing economic return in times of growth and opportunity. The key is both diversification and active management of your precious metal portfolio in such a way to more heavily weight your portfolios to the specific precious metal that serves investors objective depending on the time in the economic cycle.
Gold is often seen as an alternative to money and provides portfolios with that protection in times of economic calamity. Gold will also provide investors with a stable store of wealth in times where currencies no longer have value.
Silver having both investment and industrial applications often has an amplifier effect when held in different ratio’s alongside gold.
The PGM group metals (the success of which in pricing terms is heavily linked to global warming initiatives): Platinum, Palladium and Rhodium have industrial applications particularly in the Automotive industry. These less liquid and understood precious metals are now considered to be integral to providing the world a clean environment as their properties reduce pollution and therefore are in high demand due to tougher environment regulations being implemented globally.
When combined and actively managed the combination of these precious metals provide investors with robust all-weather portfolios that deliver amazing and consistent returns.