SMART INVESTINGSTARTS with precious metals.
With average annual returns of over 30% to 40%,
metals are the ultimate short & long term investments.
Precious metals have grown at a constistent rate for decades. Secure your short term profits and long term goals with a precious metals investment.
Investment experts have long recommend portfolio diversification with at least 15% to 25% of an investor’s portfolio being allocated to tangible assets such as precious metals. That’s a prudent diversification strategy at any time, but in today’s uncertain political and economic environment, there are many sound reasons to consider investing in precious metals immediately. We have highlighted three:
1. Precious metals are a secure hedge against a declining U.S. dollar.
The value of the U.S. Dollar declined more than 40% from 2002 to 2008, plunging even deeper in recent months. For a long list of reasons, including the massive US government debt, the cost of a prolonged war against terrorism, and a massive trade imbalance, this trend is just beginning. This means U.S. Dollars could now be worth less and less every day. What is often not understood is that gold and silver never become more valuable; rather, it is the currency in our wallets which has become steadily less valuable over time. Since the Federal Reserve was entrusted with the “care” of the U.S. dollar in 1913, it has lost approximately 97% of its value.
2. Precious metals have been a proven safe-haven in times of economic and political uncertainty.
Today’s financial markets are plagued by ups and downs on a daily basis. As rapid changes in the economy and international geopolitical instability develop, the markets react. Whenever and wherever tension is felt, investors naturally gravitate toward the assets they trust most. Today, the asset class millions rely on in times of trouble is precious metals. Investment demand for bullion is driving prices up much faster than real world demand, resulting in what is expected to be a long-term period of unprecedented growth. But perhaps more importantly, demand is increasing much faster than the supply of gold – which has been nearly flat for many years, despite the large increase in the price of gold. This strongly suggests we have already reached an era of “peak gold,” where the supply of gold cannot be increased no matter how high the price of gold surges. This scenario is an investor's dream.
3. Precious metals offer outstanding profit potential.
After the infamous stock market "bubble" in early 2000 wiped out trillions of dollars of investor equity, it took over 7 years for the major stock indices to return to anywhere close to their previous highs. Gold prices, for example, rose over 130% during the same time period. In the last year, metals prices have soared to record highs, while financial experts continue to forecast rising gold and silver prices in the months and years ahead.
To summarize, precious metals help protect your money from losing value, while providing a vehicle for portfolio growth. Buying metals minimizes the impact of inflation and hedges against unforeseen changes in the economy, and it is the ultimate asset for financial security. Speak to your account advisor to learn about other benefits reaped by owning precious metals.
