Reasons Why Most Successful Investors Turn To Precious Metals

Do you consider yourself a savvy investor? Perhaps you have thousands of dollars in stocks and cryptocurrency and you “know” that you’ll be retiring comfortably before your peers as a result. But how confident are you really? 

Your portfolio seems to be missing something. You have all of the big names in tech in there, you’ve bought Bitcoin, and you even have an investment property or two. So what’s missing? 

Precious metals. If you aren’t investing in precious metals yet, you’re missing out. Many older and more experienced investors are already investing in gold and silver, so what’s stopping you?

We’re here to talk about why smart investors invest in precious metals to diversify their portfolios. Keep reading to learn more. 


Precious Metals Are Tangible Assets 

When you’re investing, you can invest in tangible assets or intangible assets. Tangible assets are real things that you could, in theory, hold and touch. An expensive piece of jewelry is a tangible asset.

Intangible assets are things that aren’t “real.” When you buy a share, you’re buying an intangible asset. It’s just money. Technically speaking, you’re getting a small piece of a company, but there’s nothing real or solid about it. This doesn’t make it bad, but it does make it a bit harder to assign value to. 

Precious metals are tangible assets in most cases. Investors can easily invest in tangible metal products like gold bars or bullion if they have the money to do so. These are real items that they can store in their homes and they hold genuine value that can’t go away. 

A stock price may drop. A business could go under and you can lose everything if your investments were all in stocks. When you invest in precious metals, you’re always going to have something solid you can hold in your hands and it will always hold some sort of value.

But what if you don’t want something solid? You can invest in a precious metal IRA so you still have the benefits of a precious metal investment without having to store physical gold. While it’s not quite the same as having a physical item in your hands, it still comes with the other benefits of precious metal investments.

Also, doesn’t it just feel classy and elegant to have physical gold at home? It’s technically a real currency! 

Precious Metals Are a “Safe” Investment

It’s important to note that there’s no such thing as a completely safe investment. Investing is only a step above gambling. There is always a potential to lose money, and that’s a risk that you need to measure and keep in mind when you’re deciding whether or not to invest in a particular company, property, or precious metal.

That said, precious metals (especially gold) are safer than many other investments.

Stocks and cryptocurrency are the most popular investments at the moment, and while they can definitely be profitable, they’re risky. These investments are volatile. That means that they can result in huge gains, but just as quickly, they can turn into huge losses.

Even some of the “safest” stocks have gone down immensely several times over the past few years between the COVID-19 pandemic and the current economic struggle that many businesses are facing. At one time, investing in brands like Disney or Apple was “safe,” but now, that’s no longer the case.

Precious metals gain and lose value over time, but they have a general upward trend, even if it’s slow. You won’t exponentially increase your wealth overnight through your investment in precious metals, but you can slowly and surely accumulate more wealth over time. 

Some people find this boring. It may be boring, but it’s also a responsible and sustainable way to invest. If you start investing in precious metals while you’re in your younger years, you’ll accrue a decent amount of money by the time you’re ready to retire. 

It’s Good to Have a Diverse Portfolio

Any good investor will tell you that you need to diversify if you want to be successful.

Think of all of the people who had put all of their money into a popular stock like Gamestop. It looked like it was going to be a huge win for them, but after an initial bump, it crashed and it hasn’t yet returned to that high point. People who only had that one investment may have lost everything.

Even if you invest in multiple stocks or crypto coins, you’re still putting yourself at risk. Once the market drops, everything drops. 

You should add other types of investments, like precious metals, as a hedge against inflation and as protection from potential drops in your riskier investments. When you lose money on volatile stocks or coins, it won’t be as dramatic because your precious metals are protecting your portfolio. Diversifying will save your bank account, even during a recession. 

Precious Metals Are Technically Limited Resources

There is no shortage of shares in this world. There will always be more businesses to invest in. Businesses will always be buying and selling shares. The cost will change, but the availability will not.

Precious metals are limited resources. At the moment, we can’t just make more. With a limited amount in circulation, the cost of them will only rise as demand increases and the population grows.

Don’t you want to invest in a limited resource rather than one that’s being artificially inflated or limited? This goes back to precious metals being tangible. The value is partially in the rarity of the metals. 

Are You Investing In Precious Metals Yet? 

So what’s stopping you from investing in precious metals? Successful investors already know how valuable they are. If your portfolio is all stocks, cryptocurrency, and real estate, you’re missing out on another helpful piece of the investment puzzle. 

Take it from us. It’s time to start investing in precious metals today. 

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