Page 7 - Investing in the Stock Market vs. Precious Metals

Portfolio Diversification
Whether you have an aggressive or conservative investment approach, you can diversify your portfolio using gold, silver, and other precious metals. In fact, many savvy investors keep a portion of their total assets in gold or silver.
If you have been investing primarily in traditional financial assets such as stocks and bonds, you can diversify your portfolio by adding gold and silver to it. By diversifying your investments you could protect your portfolio against too much exposure to any one class of asset.
This portfolio diversification with gold and silver could be helpful in weathering financial crises and recessions. Holding gold and silver in your portfolio could not only help you reduce the losses you suffer, it could also help you start rebuilding value quicker.
Liquidity
Gold and silver are highly liquid assets. Gold markets operate 24 hours a day, around the globe. If you’re looking to sell gold or silver, you’ll almost always be able to find a buyer.
With modern investment vehicles such as a precious metals IRA, selling your gold and silver can be easier than ever. Taking a distribution from your precious metals IRA or liquidating your precious metals investments is done in exactly the same way as if you were selling stocks or bonds from your IRA or 401(k).
Safe-Haven Asset
Gold is referred to as a safe-haven asset, and for good reason. Throughout history, national currencies have come and gone but gold has remained. That stability of gold is a result of the fact that gold doesn’t depend on government promises for its value. It has been highly valued by both consumers and investors for thousands of years, and that won’t change.
Gold and other precious metals are not directly affected by the monetary policies of any country, and they can’t be created out of thin air like modern fiat currencies. They also can’t be unilaterally devalued, as markets and investors around the world will always be ready to buy gold and silver.
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