Precious metals are considered defensive assets. They allow you to save the purchasing power of capital over a long period of time. The risks that are covered by investments in precious metals are associated with the most severe stressful situations for financial markets and for each person. These are inflation (as well as stagflation, reflation), devaluation of fiat currencies, financial crises, disruptions of political systems, wars, revolutions and other unpleasant situations. Previous investments in precious metals can be useful to your children, grandchildren and even great-grandchildren.
The main advantages of acquiring gold or silver as an investment asset in the crypto market.
High liquidity of precious metals markets. You can always buy or sell a precious metal, regardless of the state of the market, shocks in the economic system, the form of government in a particular country, the circulation of certain fiat currencies.
Limited loss of value. Losses in the sale of precious metals are usually minimal or non-existent, given the length of the investment period. Metals never lose their full value, on the contrary, long-term prices move in an upward trend. Since an asset is considered a defensive asset, it usually rises in value when the value of almost all other assets falls.
Investment stability. The long-term upward trend in the markets of precious metals, in particular gold, is constantly continuing. It is driven by the essence of the current debt-based financial system of the world, in which all fiat currencies tend to their true value – zero.
Versatility and recognition. Gold and silver have been considered universal assets for more than 5000 years, although their role in the modern economy is greatly underestimated. At the same time, you can exchange these metals for any currency anywhere in the world.
The value of possession. Many people forget about this purely psychological factor of owning gold and silver, but it exists. By purchasing precious metals, a person intuitively experiences a sense of security and reliability, as well as a sense of satisfaction from the “wealth effect”. No wonder the accumulation of gold and silver is called the “thesaurus”, that is, the accumulation of treasures. Man has sought to accumulate them at all times, and now is no exception.
A large number of available analytics on the precious metals markets. Trading precious metals involves high risks, so it is important to get timely information about the state of the markets and the industry, as well as investment opportunities.
Despite the listed advantages and disadvantages of investing, precious metals are necessary in every investment portfolio. Their presence allows you to diversify the portfolio, reduce losses from market stresses, protect investments from inflation and increase the overall return on investment. Be aware of the existence of protective assets, not only in bad times, but also in times of stability and economic growth.
In theory, everything seems simple and understandable – pitfalls emerge, as a rule, already in the process of trading. To minimize their number, first try to increase virtual money – open a demo account in “Opening Investments”. And do not forget to subscribe to our updates to keep abreast of the latest articles – so you can develop simultaneously in all directions!
There are a variety of ways to purchase precious metals such as gold, silver, and platinum, as well as a number of compelling reasons to join the treasure hunt. So, if you’re new to precious metals, keep reading to find out more about how they function and how you might invest in them.