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Historically, the value of the currency has always been tied to precious metals; most notably gold. It is not until 1973 that the U.S. dollar stopped being backed by gold! However, the thing about currency is that it inflates. You would not expect to pay the same price for a product or service five years later. People had to find a way to protect their assets from losing value due to inflation, and one way is to invest in precious metals that maintain their inherent value.
Are you thinking of investing in precious metals? Unsure whether silver or gold best suits your budget and needs? In this handy guide, we lay out all you need to know about investing in gold and silver.
Gold is an extremely rare metal that’s increasing in demand each year. This has been driven by an increase in interest from the Asian market. Did you know that India is the largest consumer of gold products? The country accounts for more than 20% of the world’s gold. You may be wondering why there is such a high demand for gold – the answer lies not in its industrial applications, but its extreme rarity. In addition, the amount of gold that exists is limited. When demand goes up, so do mining efforts, but we can only mine what is already there and not produce more.
If you are looking to protect your money from inflation, gold is a fast-appreciating asset. Historically, whenever businesses and assets tumbled in value, gold retains its value or even increasing in price.
For those who are looking to get their foot in the precious metal market but do not have a sizeable budget, silver can be a great option. Much cheaper than gold but retaining many of the same market properties, silver is a viable choice for investors who want the option of liquidating in smaller denominations. Just like gold, silver is negatively correlated to the stock and bond market, which means that when the stock market plunges, the price of precious metals goes up. This makes silver a great way of diversifying portfolios and hedging against economic uncertainty, and even investors with small capitals can get a piece of the pie with silver.
If you are looking for a way to hedge your assets against economic downturns, consider investing in silver. It can be liquidated at any time, almost instantly, and there is no risk of scams or the other party defaulting as there is with financial and stock investments.
Are you looking to start investing in gold or silver, or increase your position? When you get your gold and silver products from AGR, you can be assured that we are completely transparent with the purity of each piece and always treat our customers with the respect and honesty they deserve.
For more information about our gold and silver products, feel free to contact us today.
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