The benefits and advantages of investing in precious metal bullion
When currency and stock markets are volatile and unpredictable, then allocating a portion of one's cash resources into bullion can offer a safe hedge and deliver welcome future dividends.
a) Broader type investment classes such as stocks and real estate are subject to recurring economic cycles and their intrinsic value depends on market sentiment. Gold and silver bullion on the other, is also subject to market forces of supply and demand, but the swings evident in the stock market are less visible in the bullion markets. Also pure bullion and coins retain their intrinsic value in relation to fiat currencies.
b) Bullion is a highly liquid asset compared to property, for example. Gold, silver, platinum or palladium bullion will quickly find bidders and buyers using online websites, for example. While finding buyers for property listings can take months.
c) Silver, gold, platinum, palladium bullion are universally accepted in exchange for fiat currency. This supports the 'highly liquid' argument noted above.
d) When is comes time to buy bullion, albeit bullion bars or coins, it is quick and easy, especially for the small to medium investor. The internet offers a broad choice of bullion dealers and auction type vehicles for buying and selling bullion. This means that a strategy of incremental acquisition is viable, given one's cash resources, of course.
e) Bullion acts as a hedge against inflation and the declining value of fiat money. Witness the decline in value of the U.S dollar and other currencies around the world. Some analyst suggest that the instability of fiat currencies is not a temporary phenomena. And allocating a portion of one's assets to bullion is well worth considering.
f) Allocating a portion of one's investment resources into precious metal bullion, is considered by many professional advisors as a legitimate and prudent strategy of 'diversification'. And functions as a 'stored value' asset. The concept of diversification is not uncommon to most. While the notion of 'stored value' may be a new one. This is especially potent with regard to pure bullion and bullion coins. Why? Well simply because these assets are retain their intrinsic value despite the fluctuations in fiat currency levels. And the second benefit, is that bullion assets can be liquidated quickly in small amount in exchange for hard currency.
g) There maybe certain tax advantages achieved by investing in bullion, depending on one's domicile. In the United States for example, tax rules allow bullion investments as part of an Individual Retirement Account (IRA).
h) Any time is a good time to invest in bullion. Why? Dollar-cost-averaging, is the answer. In a nutshell the strategy is simple: routinely buy bullion in incremental amounts depending on your overall budget allocation. When the spot price of bullion is bullish, then sure you pay more each time when buying. But the value of the previous holding has risen in value. On the other hand when the spot price of bullion is bearish, then each staged buy will acquire more quantity of bullion. This assumes that the incremental buys are done with a fixed currency amount.
In summary, give due consideration to diversifying your resources into pure bullion and coins. Adopt a dollar-cost-averaging mindframe. Plan a timeframe during which exchange a fixed amount of cash for gold, silver, platinum or palladium bullion and coins.
a) Broader type investment classes such as stocks and real estate are subject to recurring economic cycles and their intrinsic value depends on market sentiment. Gold and silver bullion on the other, is also subject to market forces of supply and demand, but the swings evident in the stock market are less visible in the bullion markets. Also pure bullion and coins retain their intrinsic value in relation to fiat currencies.
b) Bullion is a highly liquid asset compared to property, for example. Gold, silver, platinum or palladium bullion will quickly find bidders and buyers using online websites, for example. While finding buyers for property listings can take months.
c) Silver, gold, platinum, palladium bullion are universally accepted in exchange for fiat currency. This supports the 'highly liquid' argument noted above.
d) When is comes time to buy bullion, albeit bullion bars or coins, it is quick and easy, especially for the small to medium investor. The internet offers a broad choice of bullion dealers and auction type vehicles for buying and selling bullion. This means that a strategy of incremental acquisition is viable, given one's cash resources, of course.
e) Bullion acts as a hedge against inflation and the declining value of fiat money. Witness the decline in value of the U.S dollar and other currencies around the world. Some analyst suggest that the instability of fiat currencies is not a temporary phenomena. And allocating a portion of one's assets to bullion is well worth considering.
f) Allocating a portion of one's investment resources into precious metal bullion, is considered by many professional advisors as a legitimate and prudent strategy of 'diversification'. And functions as a 'stored value' asset. The concept of diversification is not uncommon to most. While the notion of 'stored value' may be a new one. This is especially potent with regard to pure bullion and bullion coins. Why? Well simply because these assets are retain their intrinsic value despite the fluctuations in fiat currency levels. And the second benefit, is that bullion assets can be liquidated quickly in small amount in exchange for hard currency.
g) There maybe certain tax advantages achieved by investing in bullion, depending on one's domicile. In the United States for example, tax rules allow bullion investments as part of an Individual Retirement Account (IRA).
h) Any time is a good time to invest in bullion. Why? Dollar-cost-averaging, is the answer. In a nutshell the strategy is simple: routinely buy bullion in incremental amounts depending on your overall budget allocation. When the spot price of bullion is bullish, then sure you pay more each time when buying. But the value of the previous holding has risen in value. On the other hand when the spot price of bullion is bearish, then each staged buy will acquire more quantity of bullion. This assumes that the incremental buys are done with a fixed currency amount.
In summary, give due consideration to diversifying your resources into pure bullion and coins. Adopt a dollar-cost-averaging mindframe. Plan a timeframe during which exchange a fixed amount of cash for gold, silver, platinum or palladium bullion and coins.
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