Are Precious Metals Worth Investing In?

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Jul 22 2022
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Paying attention to the news these days is a chore all on its own.  The number of doomsayers and prophets predicting the doom of the world and a huge economic crash upcoming is concerning, to say the least.  Sadly, there seems to be some credibility to these worries.


Why do I say that?  Well, doing any modicum of research will show you that a lot of those doomsayers are quite good at what they do in their fields.  As you can see in this article, https://www.washingtonpost.com/business/2022/05/19/recession-economy-markets/, well respected public figures are saying it too.


Is there anything we can do to protect ourselves, though?  It’s easy to feel completely hopeless right now, that’s for sure.  While it’s fine to wallow a little bit, there are strategies we can take to prepare for a potential market crash.


Why a Market Crash?

The exact reasons that one might be coming are hotly debated.  Some believe it’s a byproduct of the pandemic.  The global economy slowed significantly due to it.  Tourism was an industry hit especially hard, and you would be surprised by how many countries (and even states) depend on tourists to fuel their local economies.

Are Precious Metals Worth Investing In

This means that airlines were hit as well, along with trains and cruise lines.  It might not seem like a big deal to the average person, but it also led to issues with supply chains.  Even now, there are shortages of important things like baby formula here in the United States that are difficult to handle.


Another factor is all the conflict happening on a worldwide scale currently.  Obviously, the tensions with Russia due to what is happening in Ukraine is something to be cognizant of.  Inflation levels are rising astronomically alongside the prices of most items – including necessities.  The cost of filling up a tank of gas is harrowing.


What Can We Do?

The biggest piece of advice that I can offer right now is to start investing.  A lot of us think of investing as something that only older people do, or only wealthy people do – I urge you to do it, even if you only make small ones at first.  Having something to fall back on in the event of a decline in the economy is going to make or break a lot of people.


One of the goals of making investments is to allow your resources to outpace the rates of inflation.  It might not be entirely feasible right now given how fast that is raising right now, but we can at least make an effort.  Where should we put our money, though?


Again, this is something that experts cannot seem to agree on.  Mutual funds, stocks, bonds, real estate, commodities – the choices are limitless.  The consensus doesn’t exist, unfortunately.  Here is a list of some potentials, but I’ll save the best for last of course!

Are Precious Metals Worth Investing In - Calculation

Government Issued Bonds

These are, as the name implies, issued by the government.  The short-term options are probably the best to go for right now, so that you can get returns more quickly.  When you get one, you are essentially purchasing a part of the federal debt (in a small chunk, of course).  It’s like you’re lending your money to them.


Why are they a solid choice?  Well, they’re fairly low risk.  You’re likely to make your money back.  They also won’t be impacted very much by inflation or interest rate fluctuations.  If you’re looking for a safe option, you might want to go with these.


Dividend Stock Funds

For those of us who enjoy participating in the stock market, this is a way to get returns on your investments in the long-term as well as getting cash advances along the way.  When you get one, a part of the company’s profits is paid out to any shareholders in what are called dividends.


This investment method is good for anyone who wants to make additional income from their stocks.  While there are risks associated (mostly to do with the company that you get the stock from), if you do your research and select a company that has a good history of increasing dividends, they’re an excellent choice.


Rental Housing

Calling all landlords or people interested in becoming one – getting into the real estate market right now is surprisingly beneficial.  As with all ways to invest, certain risks are involved.  You are the one in charge of repairs for your properties, for example.  However, renting out your space to tenants can help you make the most of your property.

Are Precious Metals Worth Investing In - Piggiebank

Silver and Gold

As promised, I kept the best for last!  You might consider Investing In Gold if you want a secure hedge against inflation and easy way to liquify your investments.  You have a good variety of options to choose from if you want to get into this market as well.


If you didn’t know, precious metals are a commodity.  Commodities in terms of economics are raw goods that are sold in that form, usually for something like manufacturing or producing other items.  The four types that are often used in investing are silver, gold, palladium, and platinum.


However, most people opt for the former two, as they are sold in physical form more often.  Palladium and platinum are special in that they are rarely smelted into bars, but rather used in production.  Of course, you don’t have to get the physical items to invest in metals.


Another option is by getting mutual funds or stocks for companies that deal with them.  You could opt for a mining company, for example, or an organization that manufactures a lot of products made of gold or silver.  Electronics and automobiles are popular industries to invest in for this.


Why are they a good choice, though?  Well, a lot of it comes from their strong background.  You will be hard pressed to find a time in history where precious metals have not held much value.  So, for something that will likely continue being worth something, you might go for them!

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