Gold and Silver – Wearing your investments on your sleeve

From hoards of Roman coins to the glittering weddings of modern India, gold and silver have proved to be the oldest and the most popular of investments.  Throughout history both precious metals have been a ‘safe-haven’ investment, in some cases one that you can wear.  Gold and silver are both finite resources and there is only so much to go round.  The small amount of gold, in particular, that actually exists in the world makes it one of the most sought after investments in times of economic turmoil and uncertainty.  Gold and silver prices have recently been breaking records as the global financial world continues to limp along from crises to crises.  The headline ‘gold prices hit record high’ has become so common recently that it is almost a cliché!

Safety in Gold

So why do people invest in precious metals – even when the price of gold and silver is hitting a record high?  The first and oldest reason is security.  Gold and silver prices once they reach that high don’t generally fall back on themselves.  They do fluctuate, like any other investment, but when you examine historical figures the price of both precious metals shows up as a remarkably consistent upward curve.  Because of the scarcity of both metals they can be expected to always outperform nearly any other investment in the long term.  The second reason that many investors see gold and silver as an attractive option during economically troubled times is that it’s at these times that gold and silver can perform well.  The first sign of a stock market crash and the price of gold jumps pleasantly.  When Fitch cut the credit rating of Greece last week, the price of gold jumped by 1.5% as investors ran to secure their cash in the safest place they could think of.  Continuing economic uncertainty throughout the Euro-zone over the future of the Euro is keeping the price of both precious metals buoyant.

Short or long term gains?

Though gold and silver prices are offering the chance to make some significant gains in the short term – at the moment – generally both metals are viewed as a long term investment.  In less troubled times gold and silver consistently retain their value and perform well.  Most financial advisors suggest that an investment in gold, silver or preferably both, is a good basis for any portfolio.  Due to their scarcity, both metals act like the original ‘tracker’ investment when it comes to inflation.  This means that they are ideal investments to provide a sound basis to a portfolio.  Retaining them for many years will see your investment grow with inflation and usually outperform it.  Over longer periods gold is a good way to reap some serious financial rewards.  With most investments record highs tend to be followed by record lows.  While there is risk in investing in gold and silver they do not historically succumb to huge crashes.  Investing in gold and silver when prices are high, may be risky, but it depends on your investment strategy.  In the long term cash invested in gold and silver will retain its value and also grow.

Online Security

Traditionally gold and silver investment has been seen as the preserve of the super rich, but this is no longer the case.  Numerous opportunities are available for those wishing to invest in gold and silver via the internet.  Nor do you have to wear your investment on your sleeve – although this is an option!  The majority of sites offering gold and silver bullion will be able to arrange secure storage in their own vaults, making even the smallest purchase a simple hassle free transaction.  Investing in gold and silver – as those Roman hoards illustrate – has been universally popular for millennia.  As a safe haven for cash in trouble times, both metals continue to be the most attractive option for investors – whatever their budget.