Why Invest in Precious Metals
Uncertainty in the Markets
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Benefits of Investing in Precious Metals
Many experts believe that the stock markets, and the mutual funds that invest in them, are overvalued and potentially at risk for correction similar to the corrections seen in 1929, 1987, 2000 and 2008. Stock market investors should consider balancing their market risk with real precious metals and not just gold stocks, which like all stocks, are subject to business risk as well as market risk and volatility. Historically, physical gold has been a premier and desirable financial asset in times of market turmoil. Precious metals are one of the only financial asset classes in an investment portfolio that are not simultaneously someone else's liability.
The Prospect of Inflation
In an attempt to avoid a recession, the U.S. government has been forced to inflate the economy with an easy monetary policy and increased spending. Precious metals may offer inflation protection and profit opportunity, as evidenced by the skyrocketing precious metal prices in the 1970s when inflation rates reached double-digits.
As our national debt has reached new highs, interest payments now drain the budget of billions of dollars each month. If history is any indication, this debt could lead to a new wave of inflation.
Wealth Protection in the 21st Century
Increasing level of domestic and international strife, terrorism, war, declining value of the U.S. Dollar, overvalued stock, bond and real estate markets are all very real concerns for investors today. These economic events also increase the possibilities of inflation, deflation, recessions, depressions, and even tougher times in the near future.
For thousands of years, in good times and bad, physical precious metals have offered investors a solid, long-term and tangible way to hold wealth. Unlike paper investments, like stocks and bonds, that can become worthless overnight, precious metals have true intrinsic value. In such an uncertain environment, it is natural and appropriate to seek out alternative strategies like investing in precious metals.