Why gold and silver should be a part of every portfolio
written byDan Legere
Gold and silver have always been valuable commodities, but today they’re both more important than ever. As central banks continue to devalue fiat currencies in favor of inflationary measures, the importance of gold and silver will only grow, making it more important than ever to incorporate them into your portfolio. If you’re new to the world of numismatics (the study or collection of coins), here are 3 reasons why gold and silver should be a part of every portfolio.
The appeal of gold and silver
Gold and silver have always been prized as valuable assets because they’re rare, easy to identify, indestructible (if properly stored), and easy to recognize—all qualities that make them a viable store of value. Historically, that appeal has been fundamental for people who want to protect their money from inflation or deflation, confiscation by governments or banks, social upheaval caused by protests and riots, global political instability triggered by terrorism or war, natural disasters like earthquakes or tornadoes. And today it remains just as true. Though major currencies are no longer backed by precious metals—the U.S.
How much gold and silver should you own?
Everyone has their own opinion on how much precious metals you should hold in your investment portfolio. The truth is that everyone's circumstances are different, so there's no one-size-fits-all answer to that question. The best way to determine what is right for you is to consult an expert who can take into account your situation. Most financial planners agree, however, that at least 10% of your net worth should be invested in precious metals.
The future of this market
There are several reasons why many experts are so bullish on gold. For one, global economic uncertainty is high, which makes it more difficult for national currencies to hold their value over time. This is another good reason to diversify your holdings by including precious metals such as gold and silver. These safe haven assets will hold their value in times of crisis while also providing growth potential if/when things start to turn around again.