Investing in Gold and Silver to Protect a Portfolio

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Global economic troubles, a loss of the value of printed money and rising inflation rates are sending more and more investors towards investing in gold, silver and other forms of precious metals. Investing in precious metals as a trend appears to be steadily rising and this trend is expected to continue in the future. Investing in precious metals is a great way for an investor to add security to their portfolio and the value of these precious metals always seems to rise.

Renewed Interest in Precious Metals
Since the real estate bubble burst in 2008, more investors are looking for safer ways to protect their portfolios and invest their money. Investing in gold and silver has been gaining popularity since then, and this renewed interest in precious metals can be seen just about everywhere. Everyone has seen an increase in the amount of copper that has been stolen in the last few years, as well as commercials and radio and print advertisements for cash for gold services and historic golden coin investments. This renewed interest has sent many investors to their precious metals dealers and has slightly increased the prices of gold and silver on the market.

Why Invest in Gold and Silver?
There are several reasons why investors would want to choose gold, silver and other forms of precious metals such as platinum and palladium for their portfolios. Physical gold and silver have intrinsic value and this value tends to go up when paper currency values go down. Gold and silver have been traded as money for thousands of years. Even the ancients realized that these metals were easy to trade, easy to recognize, divisible, liquid in nature, easy to convert to paper and high in demand. Even today, gold and silver are highly demanded as both adornments and currency. These metals are also used in many manufacturing and production industries, which add to their demand. Actual supplies of gold and silver are low however, which makes sure that their value remains high. It takes a great deal of resources to remove gold and silver from the ground and locating new supplies of these precious metals is difficult. When the problems associated with mining gold and silver in politically unstable countries are added to the equation investors can see just how difficult it is to supply the world with gold and silver. This ensures that both gold and silver will always have good value.

Who Can Invest in Gold and Silver?
The good news is that investing in gold and silver is not just for super rich investors. Just about any investor with any budget can invest in precious metals. Precious metals can be used in conjunction with other forms of investment to create a very secure portfolio. When paper currency fails, investors who choose gold and silver will still have tangible worth in their portfolios. When other types of investments lose money, investors who choose to add gold and silver to their portfolios will have products to keep making money with. Gold and silver can be used to hedge a portfolio against inflation, which is why they are becoming more popular types of investments.