Precious metals don't pay dividends: physically owning gold and silver or other precious metals doesn't provide an opportunity to earn dividend income. This is a very common debate regarding these investments, as investments in dividend-paying stocks can offer investors an opportunity to accelerate portfolio growth. Jeffrey Christian, from CPM Group, explains how much gold and silver you should own to minimize risk and maximize the reward of your investment. Jeff analyzes the behavior of gold and silver in relation to other assets and offers some theoretical benefits that investors could have obtained simply by following the CPM Group's interim recommendations over the past 42 years.
Gold, silver and other precious metals are natural resources with a limited supply. Due to the finite supply of precious metals, as demand increases, prices are likely to rise as well. Investors treat gold more like a currency than silver, a metal that has many more industrial uses than gold. Precious metals can be volatile: gold, silver and other precious metals can be very volatile and experience sudden changes in prices.
Precious metals can offer diversification: gold, silver and other precious metals usually have little correlation with stocks or bonds. In other words, you could buy more than 40 ounces of silver for the same price as half an ounce of gold. Investors view bitcoin and other cryptocurrencies as assets that could behave in a similar way to gold and silver. Precious metals are expensive: precious metals are expensive and investors often pay high premiums to buy gold and silver.
Gold, silver and precious metals can provide greater peace of mind, but they can also have an opportunity cost. Precious metals can be an excellent insurance policy: some consider gold, silver and precious metals to be a world currency. Even so, investment experts say that gold, silver and other precious metals, such as platinum and palladium, could make sense as a small part of a larger investment portfolio. Precious metals such as gold and silver have been considered a store of value for thousands of years.
Precious metals have a long history of reliably storing value around the world. To help you decide how much gold and silver you'd like to consider owning, we've compiled information from all over the country. These premiums can make ingot or currency very expensive compared to the current spot price of gold or silver. Precious metals can offer protection against inflation: gold, silver and other precious metals can offer protection against inflation or rising prices.
