What Makes Gold and Silver a Good Investment

Having a significant surplus in your budget is definitely preferable than facing a deficit, yet, it is not a simple matter at all. Deciding what to do with this money is a complex issue. Some people decide to put all of it into their savings account or buy a property (if they have enough money for such an investment). Others decide to invest; however, this raises more questions than it answers.

Should you invest in stocks, try day trading or invest in cryptocurrencies? There is no clear answer. Nonetheless, a lot of people agree that one of the safest and most lucrative investments you can make in the long-run is the traditional option of buying precious metals. That being said, here are several reasons why gold and silver are still a great investment.

It’s a hard asset

Funny as it may seem, a lot of people find comfort in the fact that an investment in gold and silver gives you an asset that you can place in the palm of your hand. This means that you can display it in your living room, lock it in a safe or even bury it in your backyard (should you wish so). Unlike a stock, money in your bank account or cryptocurrency, it is not something that exists, grows and disappears on the screen of a device. In the era where cyber-crime is on the rise, being able to physically protect your assets on your own can make a world of a difference. For this, nonetheless, you will have to learn how to properly store gold and silver.

They’re incredibly easy to buy

Another thing you need to take into consideration is the fact that never before was it so easy to buy gold online in Australia. All you have to do is find the right online provider, visit their platform and make a purchase through a simple checkout process. Nowadays, some of the most tech-savvy providers are accepting payments in Bitcoin, which can be quite handy for those who are now willing to switch from volatile cryptocurrency to something a bit more traditional and consistent.

Diversifying your portfolio

Perhaps one of the main reasons why one invests in precious metals lies in the fact that it significantly diversifies one’s portfolio. In fact, according to numerous experts, it is by far the safest to keep about 15, 20 or 25 per cent of your assets in precious metals, regardless of your other investments. The reason behind this lies in the fact that the prices of gold and silver don’t abide by the same laws as the rest of the market, which means that you stand a much greater chance of preserving your assets even in moments of the greatest crisis.

Constant demand

The greatest pro-gold and silver argument lies in the fact that these currencies have been in demand for millennia. In fact, they are the earliest form of currency and, as such, have existed for as long as civilization itself. The reason why this is so important is the fact that more and more people decide to invest in startups that are no more than several months old or trends that have existed for less than a decade.

Tax on gold and silver

Finally, if you decide to sell your gold and silver for profit, you need to know one thing – the longer you wait, the more you stand to earn. You see, if you have some gold or silver in your possession for longer than 12 months, you are only required to pay tax on half the gain. Nevertheless, this is most definitely something you should consult your accountant about.

Conclusion

At the end of the day, apart from all of the above-listed properties, gold and silver also have a sentimental value. They are assets that have an innate worth and even in the moments of the greatest price decline, it is almost guaranteed that it will, eventually, bounce back. With this in mind, it is safe to say that keeping at least a part of your assets in gold and silver is definitely a good investment.