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Protect your Portfolio against Inflation Using Gold and Silver Bullion

30 April 2016 No Comment

canstockphoto8994691In times of geopolitical instability, it pays to diversify one’s portfolio with investments that can hold up despite the pressure. To this end, many investors are following the lead of entire nations and are placing more emphasis on precious metals.  Gold and silver bullion bring a stability of value that cannot be matched by other options. Today’s governments use fiat money, printed paper currency that has no raw value. It should come as no surprise, then, that governments have printed excessively in the last few decades, which has in turn created a tide of inflation that many investors have found difficult to weather. Because inflation is a well-documented result of increased money production, many investors are diversifying their portfolio with gold and silver. These days it pays to be wary of currencies and the value of money — especially when there is so little global certainty, and this is why a wealth management company can help guide your investment safely through the gale, as they can help you acquire, invest, and even store your gold and silver bullion.

Precious metals have shown a remarkable tendency throughout the last 50 years to resist economic decline and dollar devaluation. According to the experts at Guildhall Wealth Management, up until 150 years ago, precious metals were the only currency available at all — and the value of gold in particular controlled the finances of the world. They contributed to economic stability, and no investor needed to fear the ruin of a portfolio denominated in bars of gold.  The reason for this is gold and silver fulfill all the characteristics of sound currency, which were developed by the early Greek philosopher Aristotle: Money should be durable, portable, divisible, and intrinsically valuable. This is the precise reason why financial experts who wish to strike a balance between risk and reward are so keen on learning the benefits of holding gold in RRSP accounts.

Unlike the dollar bill, which has no practical use, gold and silver are used in computer parts, as jewelry, as electrical conductors, and as an international medium of exchange, which allows these materials to retain and even grow their value as fiat currencies lose theirs. It’s no wonder that even TV shows romanticize gold, the gold rush, and the power of this metal.

Gold is extremely valuable, and tends to go up when everything else is heading down. If you have 1 oz. of gold, you have the equivalent of thirteen 100 dollar bills at the 2016 level of inflation. The portability of gold cannot be overemphasized. Gold gained an average of 32% per year as measured by the devaluing dollar from 2008 to 2013, and financial planners like those at Guildhall were busy securing more and more precious metal investments for their clients. Silver, besides being the top chemical conductor for electricity, is much less valuable than gold, but it is still an excellent addition to your portfolio — especially if you’re a first-time precious metals investor and wish to start on a smaller scale.
If you want to protect your portfolio, look to precious metals to help build a better financial foundation. Remember that you’re not in the fight alone and that a talented wealth management company can help you attain financial security.

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