Have you ever considered investment wealth as a means of steadily growing your asset portfolio? Investment wealth is how many assets you’ve acquired that will make you money. Essentially, it’s money you put away to make more money. You allocate your money into various assets like stocks, bonds, real estate, or businesses, which ideally appreciate (grow in value) over time. Different sorts of investment wealth include home equity, property rental, and gold.
Gold, a precious metal, holds its value even when inflation rises. They’re renowned for increasing in value over time. They can help you balance your portfolio and decrease overall risk. Precious metals have been appreciated for centuries for being tangible and easy to convert to cash.
Read on to learn why gold is a superior investment, its history, the different sorts of gold investments, and why it’s better than investing with a bank.
Better Than the Bank?
Precious metals have various investment advantages, like offering a different asset class and reducing risk. They also hold their value much more than traditional bank accounts, which lose their value over time. In addition, gold is an asset you can hold and touch, thus offering a sense of security.
Investments with a bank can be volatile, as market conditions can change quickly because of political happenings or economic disasters. While bank investments can be liquidated, it may take longer than with precious metals, a hurdle if you’re in a pinch and need quick cash. Lastly, precious metals hold their value over time, appreciating even when market conditions are unpredictable. In 2015 a 1 oz Kruger cost R 15 000. Today it costs R46 000.
What Sorts of Precious Metals Can I Invest in?
You can invest in numerous kinds of precious metals. Here is the Big Four of investment metals.
Gold
Gold has a history of appreciating over time and has been renowned as a safe investment for centuries. Click here to see it’s value today.
Silver
Silver is often considered a more volatile investment than gold. It is often used in the industrial industry and as an investment.
Platinum
Often used in industrial industries. Its price fluctuates depending on the state of automotive production.
Palladium
Palladium also fluctuates depending on the stability of the automotive industry. It’s used to produce catalytic converters.
The History of Precious Metal Investment
Gold and silver were among the first metals to be found and invested in. They were used as a medium of exchange and a symbol of wealth. As societies evolved, they became the preferred method of bartering, their intrinsic value making them a reliable currency system. As humanity took its first steps into the Middle Ages, precious metals became the dominant form of currency in Europe. In America, the discovery of gold and silver deposits was the cause of massive inflation and market fluctuations. Merchants began to invest in precious metals as a shield against economic uncertainty.
Right now, in the Modern Era, many countries have adopted the gold standard. It provides stability and a baseline for investment in the global economy. The development of future and opinion-dominated markets and exchange-traded funds has made gold accessible to more investors than ever. Gold can now be sold for a profit anywhere in the world.
How Tangible are Gold Investments?
Gold and other precious metals are a popular choice among traders because you can physically hold them in your hand. You can hold it, see it, and touch it. With its tangibility, investing in gold means you have direct control over your investment, which provides a sense of security and ownership.
Forms of Tangible Gold Investments
Gold bullions, or gold bars and coins, are the purest form of gold investment. You can wrap your fingers around them, making for maximum tangibility. Another type of popular gold investment is the Kruger bar. They derive their name from the famous South African Kruger National Park and are gold coins minted by the South African Mint.
They’re highly sought after by investors because of their .9167 gold purity. Each Kruger Rand coins one troy ounce of and features the iconic South African springbok. They’re highly liquid, further adding to their appeal.
Now that you know about gold and precious metals, you can go forth and make a secure investment that only appreciates in value over time and is resilient against our volatile economic conditions.
If you would like to add Kruger Rands, gold bars, or gold coins to your investment portfolio, contact Gold and Diamond Traders. We would love to help you diversify your investment portfolio in a way that maximises liquidity and value appreciation.