When the value of a currency drops, gold and silver prices usually go up. That's because people tend to flock to these safe haven assets when they're worried about the economy. So, if you're looking to protect your wealth from inflation or a weakening currency, investing in precious metals is a smart move.
Remember that don't put all your eggs in one basket adage? Well, it applies here too. Most investors who buy gold and silver do so as a form of diversification - that way their portfolios are better protected against economic downturns.
And while gold has outperformed every other asset class over the past decade, its low correlation with stocks and bonds means it can act as an effective hedge against market volatility. A recent report by Goldman Sachs Group Inc. (GS) suggested investors should allocate 5% of their portfolio to gold and 5% to silver for this very reason.
Storage Considerations: With gold, you can store it yourself at home or entrust it to a third-party storage company like Brinks Home Security (BWS). But since most people typically store physical silver coins in paper wrappers (sometimes in a safety deposit box), many buyers elect to purchase paper certificates that serve as proof of ownership instead.
Some companies provide online registration services, while others offer offline solutions via mail-in paperwork. In either case, storing silver requires more effort than owning gold but still comes with the same benefits.
And regardless of how you decide to keep it, there are plenty of reputable providers out there - like APMEX - who'll make sure your metal stays secure and available for a trade whenever you want. Bottom line: It doesn't matter whether you invest in gold or silver first; what matters is having both on hand just in case.
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