Why Invest In Gold and Silver

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From an investment standpoint, Gold and Silver, are the two most widely held precious metals in the world, and share certain similarities that make them attractive to own in a Precious Metals IRA.

Gold and Silver are considered to be real assets, as opposed to paper assets. They are the rare investment that can maintain value even as paper assets such as stocks, bonds and mutual funds, collapse in times of crisis. It is this quality that makes Gold, and to a lessor degree, Silver a “safe haven” investment in times of economic, financial and political uncertainty.

At the same time, there are enough differences, also from an investment standpoint, that many investors chose to own both of the precious metals in their IRA portfolio. Taken together, they combine to serve as an excellent hedge against the sharp losses in paper assets that inevitably occur during market crashes.

Both Gold and Silver are growing in popularity with investors who see it as protection against the continuing decline of the U.S. dollar. Over the last 40 years the value of the dollar has steadily eroded, losing over 80% of its purchasing power. With the Fed continuing its seemingly endless policy of stimulus [money printing] for the U.S. economy, that trend isn’t likely to end any time soon.

Why Invest in Gold?

Gold is increasingly considered to be an attractive investment option, as the precious metal tends to hold, and even increase its value during a crisis. In addition, the demand for Gold worldwide continues to grow, particularly in India and China, where over 1/3 of the world’s population resides.

In terms of serving as a hedge for your investment portfolio, a key element of Gold is that it has an extremely low correlation with many other asset classes, such as stocks, bonds and real estate. It is this low-correlation relationship that serves as one of Gold’s strengths as a leading retirement portfolio hedge.

Historically, Gold has been considered a hedge against inflation and the loss of purchasing power. What cost $1 in 2004 now costs $1.26, a 25.9% loss of purchasing power in 10 years. Going back another decade, what cost $1 in 1994 now costs $1.61, a 60.5% loss of purchasing power in 20 years.

While Gold serves as a hedge against the erosion of purchasing power, it simultaneously offers growth and security as a real asset. It is this dual quality that attracts investors in a weak global economy, helping the precious metal to produce gains of over 300% over the last ten years. In comparison, the S&P 500 Index, a benchmark for the stock market, has gained less than 60% over the same time period.

Physical Gold has intrinsic value, meaning it has its own worth independent of other financial conditions. In fact, in the event of a market crash, when many stocks lose much of their value for an extended period, Gold often regains, and often increases, its value.

It is why Gold is frequently referred to as a safe-haven asset, where investors put their money when other investments become too risky.

Why Invest in Silver?

Investors widely acknowledge that Silver, similar to Gold, is a robust hedge against inflation, a depreciating U.S. Dollar and global economic uncertainty.

Investors regard Silver to be a rather unique asset. It serves both as a precious and industrial metal. The industrial demand for Silver is soaring since almost all electronics are configured with Silver.

Silver coins are easy to store and to transport, and are considered to be as easy to liquidate as Gold. Silver coins are typically 99.99% pure and yet are relatively inexpensive.

Adding Silver into a financial portfolio or IRA acts as a hedge against paper asset depreciation. A Gold and Silver IRA provides portfolio diversification and protection of wealth against inflation and turbulent economies.

Central banks and their governments across the globe have reduced the selling of their Silver reserves in the world marketplace, thereby freezing the supply, which has caused Silver to become more scarce and valuable. And with demand at an all-time-high, the scarcity can drive prices higher. When there is lack of confidence in fiat money and the financial system, Silver can be a hedge against inflation. Since 2008, the price rise has been further propelled by the global economic uncertainty and the depreciation of the dollar.

Historically, Silver is recognized as a monetary store of value, inflation hedge and safe haven during uncertain economic times. Silver prices, currently at or below $20, could represent an excellent buy: Here’s why:

  • Worldwide market demand for Silver is growing, while supplies are disappearing.
  • New high-tech uses for silver are straining already-tight supplies.
  • World demand for Silver now exceeds annual production, depleting stockpiles of Silver.
  • The U.S. government has dumped billions of ounces of Silver, depressing Silver prices.
  • Contact us today to see how investing in Gold and Silver can open new doors for your investment plans and how investing in these precious metals can strengthen your savings for the future. Speak to a Regent Gold IRA specialist now to learn more.

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