When one thinks about investing in gold bars or silver coins, he or she often envisions a rich tycoon with a vault of gold or of a pirate chest full of sparkling coins. The fact of the matter, however, is that investing in physical precious metals is quickly gaining recognition as one of the wisest investments out there.
In troubled economic times, gold has always been the standard for a shaky economy to fall back on. Indeed, many investors have found that precious metals actually perform better in a dark economy because it never is out of demand. Gold and silver have long been known to be a solid long-term investment, rarely yielding high returns quickly, but generally performing very well over the long term. Lately, however, many economic analysts believe that they may do both.
Peter Schiff, president of euro pacific and global economic expert, is one such analyst. He believes that given the unsteady nature of the economy, gold may see a spike in value that is historically unprecedented. Due to the global economic collapse and gold’s universal appeal as a currency, he believes that it is not unlikely that gold will become one of the few remaining international currencies accepted. Of course, if this does not happen, investors will still be left with one of the most historically reliable commodities. For this reason, Schiff recommends that investors have at least 5-10% of their portfolios in physical precious metals.
Precious metals are also valuable to the international investor. There is no country in the world that does not consider gold and silver a precious commodity, and as such, they can be used as currency literally anywhere. For an investor that does a lot of business abroad, this can be a great benefit as it avoids the complications that come from currency exchanges and local inflation rates.
Precious metals have long been considered an insurance against a struggling economy. As a physical commodity they are not subject to the whims of the more volatile stocks on the market, and provide the investor with a tangible representation of their investment. This can provide comfort and reliability that is unusual in the investing world.
With so much uncertainty in the current global economic climate and so many risks failing to pay off, investing in physical precious metals can be the perfect way to insure a portfolio against any dark days that may lie ahead.