Both gold and silver are excellent investment options for almost any diversified portfolio. These assets are known to be large reserves of value, and they often experience price growth even in times of poor market conditions and economic uncertainty. Investors can invest in gold through exchange-traded funds (ETFs), buy shares in gold miners and partner companies, and purchase a physical product. These investors have as many reasons to invest in metal as there are methods to make those investments.
Lastly, if your primary interest is to use leverage to profit from rising gold prices, the futures market could be your answer, but keep in mind that there is a considerable amount of risk associated with any leverage-based holding. Given the higher industrial demand, silver tends to rise higher than gold with rising inflation and a fall in the dollar. The idea is that both gold and silver can be good portfolio diversifiers, especially when they are considered natural supplements to each other, which basically means that gold's resilience can help balance silver's increasing volatility. If not, I encourage you to buy physical gold and physical silver now to protect your family's wealth.
For this reason, investors often consider gold as a safe haven during times of political and economic uncertainty. Remember that gold is inversely correlated with other investments, including stocks, so you must have a significant amount of bullion before a stock sale occurs. Historically, bimetallism is where gold could be converted into silver into fiat currency at fixed exchange rates. This usually means buying companies for small multiples of their profits, but often it also means buying any asset for less than the real value.
At the other end of the spectrum are those who claim that gold is an asset with several intrinsic qualities that make it unique and necessary for investors to keep it in their portfolios. The most important thing that differentiates investment in precious metals from investment in other commodities is profit. Bitcoin could easily correct, the cryptocurrency market is much more volatile than the gold market, and faces at least some level of regulatory risk. But why not add precious metals to your repertoire? It is an easy way to bet against the value of the US dollar, volatility is not extreme and there are both industrial and investment uses.
When evaluating the dividend yield of gold stocks, consider the company's performance over time with respect to dividends. As the son of an award-winning gold digger, with family-owned mining claims in California, Arizona and Nevada, Jeff has deep roots in the industry. Gold and silver prices are so unstable (and have been over time) that their only use in an economic crisis would be to expect someone to take your silver coins or watch in exchange for a pack of toilet paper or a can of gasoline.
