Is Bullion a Good Investment? 10 Reasons Why You Should Consider Collecting Precious Metals
The world’s economy continues to become more volatile.
Climate change, pandemics, political issues, the threat of global insurgencies, and other crises constantly fluctuate the charts.
Because of these significant disturbances, inflation, deflation, and other economic fears loom upon the market and investments most people are used to are in danger. Be it a company, stocks, bonds, real estate, or savings; if an investment’s backbone is the dollar value, there must be protective measures in place to save an investor from losing money.
The 2020 recession saw the economy contracting by 5% as a result of the coronavirus pandemic.
The event was mainly caused by shutdowns placed by the government to slow the spread of COVID-19.
There can be more similar or worse phenomena in the future, and people need to prepare and secure their finances.
The Need for Financial Protection
The modern investor needs to diversify their portfolio if they are to ensure survival in these dangerous times. Whether a person has savings, a small business, or has shares in the stock market, they can significantly benefit from an excellent contingency investment.
Is Bullion a Good Investment? Bullion comes in gold, silver, platinum metals, and even copper.
These collectibles come in different shapes and sizes: small coins to heavy bars.
When a person owns such assets, they have a tangible commodity ready to use at their own will. Also, not only will bullion act as a protective measure for a person who has other holdings, but it can stand alone as an excellent investment.
Is Bullion a Good Investment? Why Should One Consider Investing in Bullion? Here Are Ten Reasons.
- It is Easy and Convenient
- Bullion is High-Value
- They Are Tangible Investments
- They Are an Excellent Safe for Value.
- They Come in Many Denominations.
- You Can Use it for Survival in the Direst Times.
- They Completely Diversify Your Portfolio.
- Precious Metals Are Always in Demand.
- They Have Plenty of Uses.
- Bullion is Excellent Financial Protection.
Reason No. 1: It is Easy and Convenient.
In the olden days, getting gold and other precious metals took voyages and laborious manual searching. Some enthusiasts had to travel the world in search of valuable investments.
Is bullion a good investment? Today, even beginners who have the least technical knowledge about bullion can invest quickly and conveniently. Novices and experts alike enjoy the convenience brought about by the digital age.
It is now simple to order precious metals over the internet. Just make sure that the store is reliable and reputable.
While there are online suppliers where buyers can choose from catalogs and menus, the most convenient way to get bullion is via monthly box deliveries. With monthly boxes, one can avoid buying the wrong items or getting counterfeit products.
Is Bullion a Good Investment? With a bullion box subscription, an investor will receive a box of precious metals that have been expertly curated every month.
With this method, buyers can be sure that they are getting legitimate metals and the current best-value items.
Is bullion a good investment? Bullion boxes eliminate having to need for a high level of expertise to get the right metals. Just order and receive excellent bullion every month.
Reason No. 2: Bullion is High-Value.
Often, Bullion is .999 fine gold and can always be sold for the precious metal content. They are just as valuable per weight as any form of gold or silver.
Whether it is coins, bars, fractional pieces, rounds, or hand-poured precious metals, it keeps its price per ounce. Is bullion a good investment? A bullion item might have added value for its rarity, novelty, cultural significance, history, or other sentiments, but it will never go below the price per weight.
Reason No. 3: They Are Tangible Investments.
Unlike ETFs, stocks, certificates, and other non-collected forms of investment, getting bullion is physical. An investor will have the assets at hand.
The tangibility allows an owner to use his bullion at his disposal. Also, when financial emergencies occur, there will be no bureaucracy coming in between an owner and his value.
When a severe crisis like war occurs, nobody will accept a gold certificate, which is basically a mere piece of paper, for shelter, food, protection, or safe passage. A person who has gold coins can use them anytime there is a crisis.
Reason No. 4: They Are an Excellent Safe for Growing Value.
Consider collecting bullion as if you are saving money in a bank, only with significantly more significant annual interest. The average interest a bank will provide is 0.09% falling remarkably short when compared to gold’s annual price increase.
Looking at the period from 2005 to 2020, the price of this precious metal has seen a 330% increase.
Calculating the numbers for a bullion collection worth at least $1000 should already have a drastic impact.
Not only is bullion useful for saving your value, but it has the added benefit of growing it drastically.
Reason No. 5: They Come in Many Denominations.
A person who owns a 1kg gold bar and needs to sell only half of its value would have to spend money in melting the metal just to make a trade.
With bullion, a person will have coins and bars ranging from small to big, and even ‘chocolate bar’ gold and silver that can be divided into distributable pieces.
The more sizes and different kinds of bullion an investor owns, the easier it is to calculate an exact value to trade. Bullion makes everything more convenient for an investor.
Reason No. 6: You Can Use it for Survival in the Direst Times.
During unfortunate personal financial setbacks, it is easier to sell or pawn bullion to get money than to go through a long process of claiming your ETFs.
Whether one is in a situation like a sudden illness, accident, business loss, fire, or other mishaps, bullion can be excellent insurance.
For any significant financial loss, a bullion owner can always find someone to sell it to, like a company, pawnshop, collector, or another investor.
It is significantly easy to find an entity that will exchange cash for bullion.
Reason No. 7: They Completely Diversify Your Portfolio.
Owning gold in itself is an excellent way of diversifying a portfolio. Someone who owns a significant amount of precious metals in their holdings will be sure that they won’t lose the entirety of their hard-earned money when the stock market plummets.
However, if one has bullion, there will be more diversity in the collection. Plus, getting bullion will grant an owner access to more than one type of precious metal.
The more kinds and types an investor has, the safer their assets are.
When the value of the dollar drops, gold’s price soars, but platinum gains a negative outlook. When the economy normalizes, platinum can double gold’s value.
Silver becomes most in demand when technological breakthroughs increase the production of electronics.
Each precious metal has its own advantages that an investor can leverage with bullion. Plus, some items have sentimental value or cultural significance that adds more premiums to their price.
Reason No. 8: Precious Metals Are Always in Demand.
Even in ancient societies, people have always revered gold and associated it with power, wealth, spiritual attainment, and dominion. These values have been carried on to the modern world.
The major religions, Christianity, Islam, Hinduism, Buddhism, and others, use gold heavily in their practices. Cathedrals and Mosques are adorned with gold, and Buddhist and Hindu statues glimmer with the metal.
People love to decorate their houses and selves with precious metals. Most of the gold and silver excavated is used in jewelry.
The way people value precious metals will continue for hundreds, if not thousands of years.
With the growing global population, it could only mean that the demand for these commodities will only continue to increase.
As emerging economies develop, their commodification of precious metals grows. This means that an investor will always find someone who will want their bullion.
Reason No. 9: They Have Plenty of Uses.
Bullion can be displayed in a family heirloom as both a display of wealth and investment or melted for industrial purposes.
Gold, silver, and platinum are significantly non-corrosive and are excellent conductors of heat and electricity.
All smartphones have silver in them, there is a minimal amount of gold in every computer, and medical apparatuses prefer platinum for their sensitive parts.
An owner of bullion can sell the collection in time for retirement and enjoy the money or pass the assets forward to an heir.
Reason No. 10: Bullion is Excellent Financial Protection.
Even if you have only a small amount of technical knowledge about precious metals, you will significantly benefit from getting bullion. You can use it as a better alternative for savings, a collection for trade, or a contingency fund for emergencies.
Is Bullion a Good Investment? If you own stocks, bonds, or a business affected by inflation, bullion can save you from total financial loss.
It diversifies your portfolio and gives you a hedge fund that protects you from economic downswings.
Is bullion a good investment? The best thing about bullion is that it is significantly easy to acquire.
All you need to do is buy from a reliable source.