Investments can take different forms such as stocks, property, or even money. However, you also need an investment that can hold value, store value, appreciate, and at the same time be resistant to market fluctuations to cushion you during economic fluctuations.
Appreciation in value
Gold and silver interestingly increase in value when other assets are depreciating. A look at the historic value of gold and silver show that these metals have continued to increase in price over the years and the trend is expected to continue.
Store of value
Gold and silver have a better storage of value than money. First, they are not subject to fluctuations in the economy over time or what economists call time value of money. They maintain their purchasing power in spite of the prevailing business cycles such as inflation.
Liquidity
Having gold and silver is as good as having money in your own hands as you can sell it anytime in return for cash. Investments such stocks and equities depend on the willingness of a third party to purchase them or the contractual terms of the investment.
Viable investment
In any day, the intrinsic value of metals commands a good price in the market. Currency, shares, and equity can drop by even 80 percent depending on the performance of the company and market conditions. This makes precious metal viable investment.
Stability
The value and profitability of other forms of investment and currencies depend on the economic climate, political stability. In spite of the economic conditions, gold and silver continue to gain value.
Open market
Most investments are only tradable within the boundaries of the parent economy unless the financial markets are internationalized. However, gold and silver acts as a commodity that can be imported or exported in whichever market that fetch high prices.
High prices
The supply for precious metals is very limited. According to the law of demand, very high demand, or low supply leads to higher prices. These metals always increase in value due to this restricted supply.
Globally accepted currency
Gold and silver can be accepted anywhere in the world without any form of conversion. Actually, economists were considering having gold as the standard currency instead of the dollar due to acceptability and stability.
High demand, more value
Precious metals come with a special sentimental value, yet the supply is restricted. This increases the economic value of the metals.
Cushion from interest rates
When interest rates fall, investors in money and capital markets incur numerous losses. To avoid this effect, invest in precious metals to cushion you from losses since their markets go against the interest rates.
Information from SAM Sputter Targets. You can click the link to see the related products of gold sputtering target and silver sputtering target.
