• Why Invest in Precious Metals?
• Why Invest in Gold?
• Why Invest in Silver?
• Why Invest in Platinum?
• Why Invest in Palladium?

Gold - Silver - Platinum - Palladium

Wise and prudent investors seek to diversify part of their portfolio into hard tangible and finite assets such as gold, silver, platinum and palladium. This is because they possess the following characteristics:

1. Precious metals have a historical negative or weak correlation to price movements in the financial markets, especially the stock market.
2. Excellent liquidity with bullion markets trading continuously around the globe and no determination of market value required by investor upon resale as the price is based on a live market price and thus not the subjective opinion of an auctioneer, valuer or vested interests. One can automatically sell one's bullion at any time of one's choosing unlike a house which can be on the market for months and sometimes a buyer can pull out at the last minute and occasionally no buyers can be found for a property.
3. Gold and silver are millenniums-old finite mediums of exchange or currency that do not represent any government's liability or ability to repay; confidence in issuing entity is 100% due to ability to assay precious metals for purity.
4. Well-established, secure and regulated intermediaries such as the AAA rated Perth Mint exist for long-term storage and insurance if holdings do not fit in or investors do not feel secure enough to store bullion in a private residence or safety deposit boxes.
5. Gold, silver, platinum and palladium are asset classes which were in a bear market for over 20 years, after their phenomenal investment returns in the stagflationary 1970’s when they rose by some 3000% from $35 to $850. Precious metals were disdained by Wall Street, much of mainstream finance and the majority of investors and were massively oversold. But since 2001, they are exhibiting signs of accumulation and increasing macroeconomic and geopolitical instability has led to an increase in demand.
6. Gold is an asset that central banks will may increasingly use to shore up confidence in increasingly debased and volatile fiat currencies as excessively loose monetary and fiscal policies which may cause monetary instability. There is a likelihood of paper money or fiat currency competitive devaluations going forward in order to maintain exports.
7. A global liquidity bubble has led to over valuations in many asset prices internationally and unfortunately, there will inevitably be readjustments. Precious metals will protect and reward investors as the global liquidity bubble unwinds.

 

 

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