There are many ways to invest money for your future, and precious metals are something that all investors should consider for their portfolios. Precious metals, especially gold, are every so often considered a good hedge against inflation. If you look at their performance over the last decade, they have outperformed stocks and shares. If you are looking to diversify your investment portfolio and add precious metals to it, below are some factors you need to consider before getting started.
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If you’ve got a lot of money saved up and want to do something with it, investing is a good idea. By using it to purchase certain goods, you can play the markets and make money out of money, which is something that everyone wants! However, playing with markets often comes with risks, and you have to know which markets are the safest in order to not lose your hard earned cash, so carry on reading if you want to know the best 3 places to invest your money!
Gold is one of those assets that people often get emotionally attached to – they either love it, or hate it.
But any successful investor will tell you that you need to be emotionally detached when choosing your investments.
On the one side you have the “gold bugs” – the world is ending, flee to a universal currency types. It’s a global currency, it’s immune to inflation and immune to government interference in an economy, they’ll argue.
On the other, you have people who point to gold under performing vs stock market prices and indexes like the S&P500, and even bonds over a 30 year period. Gold’s recent renaissance is just a phase, in their eyes. Warren Buffett even goes so far as to say it “has no utility” in typical, withering derision.
But no matter which camp you are in, you should have some gold in your portfolio.
Forex refers to an open, global market that allows the trading of various forms of currencies against one another. The Forex market is also a place where consumers can trade both local and foreign currencies with the purpose of making profits as the market moves up and down, sometimes hourly. Depending upon the currencies selected, Forex can be an extremely effective and profitable investment for those with the know-how or willingness to study and understand the market and the concept of supply and demand. Gold trading on the other hand, while not Forex exactly, is still a form of trading in an OTC (over the counter) market, but instead focuses on precious metals trading.
Precious metals are more helpful than ever before when it comes to maintaining capital, and among the metals that are sought after for their reliability are gold and silver bullion. People have valued and protected their gold and silver throughout history — as some of the most valuable commodities, they have always been used and documented as currency. Companies now exist that will provide clients with the most stable financial protection using gold, silver, and diamonds as hard assets.
Gold has a negative correlation with traditional portfolios. For one thing, when the stock market crisis occurred in 2008, gold was helpful in turning it around. While other assets such as stocks, bonds, hedge funds and real estate plunged in huge nose dives, precious metals like gold and silver bullion saved the market. Throughout 2008 to 2013, such metals gained an average of 32% per year. Bullion is a very simple investment to make because one simply buys a block of gold and then ensures that it remains safe and protected until one is ready to liquidate its value.