The reality of the stock market is that a lot of it is hard to predict. This is not the case, however, with gold and silver. Two of the standouts in the precious metals industry, trading in gold and silver is a fantastic way to build a solid investment portfolio. There are market fluctuations like any other stock, but overall, trading in the precious metals is much more like buying into a mutual fund than betting on the success of a few upstart tech companies. Much less volatility, much more opportunity to make a profit.
Gold is, after all, king of the precious metals. It holds a unique position in the world economic framework as a benchmark of currency evaluation – which is why trading it today, either in the form of solid gold itself or futures and equities, can be such a lucrative and steady business. Gold is able to hold its purchasing power for much longer than average stock because the Federal Reserve system allows for consistent growth by devaluing the purchase power of the dollar. This means that gold essentially remains more reliable than any currency on earth.
In order to build wealth with gold and silver, it’s important for investors to know a few key fundamentals about their place on the market. Once these are understood, a savvy investor can put some money into gold when it’s price decreases.
What Makes Them Move?
The key factors that make gold and silver move on the market are global market trends. For example, an investor interested in gold bullion in 2017 would have to look into the projected health of the American dollar, the expected change to the Euro, and the position that China will hold in global trade by the end of the year. Gold is a great investment at the moment because the American index is strong, the Euro will continue to fall because of Brexit and political instabilities, and the Chinese are still interested in devaluing the yen. If the American dollar begins to slip, expect the price of Gold and Silver to rise in response. This is the secret to building wealth with gold and silver: over the long term they will retain their purchasing power (value) while currency will not.
The best way to build wealth, then, is to capitalize on unstable economic times and begin accruing a healthy portion of precious metals. An example of a great opportunity for profit was in the 1970s when crude oil prices skyrocketed and gold prices soared with it. The general economic situation was quite dire, but gold and silver, because they exist outside of the currency exchange, did not lose purchasing power due to inflation. They just improved in value.
Be In It For The Long Term
Staying on top of gold and silver means looking into the last 100 years of their investment history. What is evident about these two precious metals is that both go through long movements of incline or decline. In the past 5 years gold has lost 21% of it’s value, but that’s only because it hit record highs in 2011. Working with an investment company like Guildhall Wealth Management will help ensure that gold is bought at the right time, for the best price.
Working with gold and silver means investing in the long term. A lot of investors will advise their clients never to sell gold. That’s where the nickname ‘gold bugs’ comes from – rich investors who will never sell their gold and will keep on buying when the price is low.