Chances are most people haven’t contemplated investing in gold bullion and other precious metals. While it may not seem like the most popular choice, it is a smart one. By diversifying your investment portfolio, you have a better shot at a higher return on investment. Let’s break down the advantages to investing in precious metals:
- With a diversified investment portfolio, there is less tail-risk.This means you don’t run the risk of your portfolio of assets dropping more than three standard deviations from its current price. If you decide to hold the physical asset yourself, you don’t have to worry about investors making mistakes or management going over your head to do things with your money that you’re not aware of. It also helps that the American Gold Eagle coin is the most traded coin in the world, making up about 80% of gold bullion in circulation in the United States.
- No guessing games. Gold bars allow you the freedom to invest as much or as little as you’d like, without the risk of prices falling drastically and quickly. The value of gold and precious metals remains steady. Also, holding a physical investment in your hand can make investing the money seem a bit easier.
- Precious metals are internationally valued. Unlike the stocks of local companies, gold and precious metals are valuable in countries all over the world. You can easily trade or invest in gold with a fellow investor that lives thousands of miles away.
If you are a novice when it comes to investing in precious metals and gold bars, don’t worry. With a little research and elbow grease, you can learn enough to make an informed decision about your investment in bullion. Here are some fast facts that may come in handy:
- The purest form of gold is 24 karat.
- There are two classifications of gold bars: minted bars and cast bars.
- The standard gold-selling shop in the US will sell bars up to 10 ounces.
If you are looking to make smart investments, take the time to learn more about gold and precious metals. Keep in mind that everyone’s investment experience is different! Let us know if you have any questions or suggestions in the comment section below!