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Monday, January 27, 2014

The 4 benefits of long-term precious metal investing

Gold prices are considered stable over the long term
Precious metals protect investors from currency devaluation
In these uncertain financial times it’s critical to have a game plan set in place to counter any unforeseen changes and difficulties.  However, a plan itself is not always a solution in itself as, with the ever changing market and the steady devaluation of the dollar, you do not want to find yourself powerless in the face of a crisis.  

A large amount of intelligent and experienced investors have turned to precious metal investments as a method of ensuring their wealth as the dollar’s value continues to plummet year after year.  Gold is one precious metal that has proven its value year after year.  Gold has hit record high values in recent years and by looking at its history, many consider it more than a safe alternative investment to the standard investment opportunities.  

There are a variety of factors involved in gold’s rising value including such things as increasing demand, fear of economic collapse, the devaluation of the dollar, and projected future scarcity of the commodity.  As with any investment, there is no guarantee that gold will continue to rise in value; however, because of the factors that have caused its large increases in recent years, projections for the future are more than promising.  Experts and investors alike are agreeing that the price of gold will continue to skyrocket for many years to come.  Learn more about the reasons behind gold’s steady increase in value and the projections for its future value.

You do not have to be wealthy to begin investing in precious metals such as gold or silver.  By committing yourself to take a percentage of your earnings each month and convert it to precious metals, over time you can build up a powerful reserve without causing yourself any financial difficulties.  It is usually advised to take 10% of your earnings for investments of this type; however, as the value of gold continues to rise, it would be smart to invest more if you can afford it.  

A big question that is probably on your mind is: what are the specific benefits from investing in a precious metal such as gold?  There are actually a huge variety of benefits that can be found from changing a percentage of your earnings into precious metals each month, but this article will focus on just four of the most important.  Benefits can easily be found by searching online and doing some extra research yourself. 
  1. The first benefit is the ability to combat the loss of wealth through inflation and the devaluation of the dollar.  Investing in a precious metal, such as gold, allows you to protect your earnings from the declining economy.  More specifically, as the dollar’s value goes down, the price of gold goes up.  Since the value of gold is entirely independent of the value of currency in the US and as a result your savings would be safe even from hyper-inflation.

  2. At the same time, by converting your savings to precious metals, you are also increasing and protecting the purchasing power of your savings.  Even if inflation becomes completely out of control, there is no guarantee that salaries and wages will increase at a similar rate.  Not to mention the fact that as time goes by, the money you made the week before will be worth less than it was when you earned it.

  3. Another incredibly important benefit is the protection of your savings from an economic crisis.  If banks collapsed, you could risk losing all of the money you had invested; however, as gold is a physical commodity, your savings would be entirely unaffected.

  4. You will also be protected from the rising debts of the government and excessive printing of the dollar.  The idea that foolish choices made by government officials are leading to the loss of your own wealth is maddening to think about.  If your savings are invested into precious metals, the government’s mistakes will be entirely separate from and, as a result, will not affect your wealth. 
To get started on protecting your savings, head over to Personal Income’s Gold IRA Company review section and find out how you can get started converting your money to precious metals today.

Image: Author owned and licensed

1 comment:

  1. Gold is moving following seasonal cycle and US economic this year. The US economic and stock market are moving up so gold investors are selling gold like crazy. However, if you like to keep gold for 3-4 years after buying, gold will be for you