In October 2021, the US inflation rate rose to 6.2%. This is the highest the national inflation rate has been since 1990.
And unfortunately, rising inflation rates aren’t often followed by wage increases that can keep up. So what can you do to keep you and your family financially secure?
Thankfully, you can invest in precious metals to protect yourself from inflation. Investing in precious metals also has other benefits too, including the fact that they’re easy to sell if you need extra cash.
To learn more, keep reading. We’ve got the top 5 reasons why precious metals make a worthwhile investment.
1. Inflation Safety
As inflation increases, so does the price of physical goods. But when you invest in silver or invest in gold, inflation doesn’t apply.
This is because inflation is based on currency values, such as US dollars or Euros. But when you invest in precious metals, the price is based on weight, which doesn’t fluctuate over time.
In other words, money doesn’t hold its intrinsic value over time, but precious metals do.
2. Easy To Buy and Sell
Gold, silver, and other precious metals are what are called liquid assets. This means that they can be easily sold for cash on the spot if needed.
And depending on the country you live in, your precious metal investments may be exempt from certain taxes, like capital gains tax.
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3. They Are Essential Materials
Silver and gold are found in everyday metal items like jewelry, watches, batteries, and phones. They’re also used in items like solar panels, as well as in medical or surgical applications.
Many companies are looking to buy precious metals for their assembly and production plants.
And since precious metals are essential materials, this makes them a great investment if you’re looking to sell.
4. No Correlation to the Stock Market
We all know how volatile the stock market can be, and many people have experienced devastating losses when they made the wrong predictions or when the stock market crashed.
Since precious metals aren’t related to the stock market, they can help preserve your wealth even if the stock markets aren’t doing well.
5. High Potential Return on Investment
These days, there are fewer precious metals to go around and there is a growing global demand for them. This is why it’s a perfect time to purchase precious metals.
This increased demand means that the price has a high chance of increasing. This can dramatically increase your return on investment if you sell at the right time.
Invest in Precious Metals Today
In the world of investing, there are so many aspects of the market that you can’t control, and sometimes even the experts get their predictions wrong.
When you choose to invest in precious metals, you not only help protect yourself from inflation but also diversify your portfolio with valuable, in-demand materials.
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