The stock market’s history has been one of overnight bonanzas and collapses. This volatility has prompted more cautious buyers to invest in Precious Metals. Humans have prized the natural beauty of Gold and Silver for millennia. Initially, they were used to create Jewellery, ornaments and other decorative items and were seen by the general public as symbols of power and wealth.
Early trading in these commodities was informal. Buyers haggled with merchants to obtain a favourable price for their purchases. While coins of bronze and copper were first introduced in around 1000 BC, the first known use of Gold as a currency occurred in around 550 BC by King Croesus of Lydia. While many countries later followed suit and introduced Silver Coins, Bullion Coins are no longer used as legal tender but have been replaced by paper notes and cheaper metals. Instead, Precious Metals are now formally traded in a controlled world market where their values are set daily by a spot price.
These spot prices seldom vary by much, and when fluctuations occur, these are mainly due to variations in supply and demand. As a result, Gold and Silver are widely favoured as reliable investment opportunities.
Long and short-term Precious Metals investment
Unlike the value of Gold and Silver, stock prices are affected by numerous factors, from company mergers, resignations and bankruptcies to political unrest, interest rates, new legislation and disruptive technologies. Consequently, most experienced investors include Gold in their portfolios to help compensate for losses from poor-performing stocks.
It would be misleading to suggest that Precious Metals prices don’t fall occasionally, but the overall trend for Gold has been upward for decades. The occasional price drops make it a good choice for long and short-term investors – the secret lies in knowing when to buy and when to sell.
- Long-term: Purchasing Bullion as minted coins or bars can be the perfect way to build up a sizeable nest egg for the future. It could be a way to pay for your children’s further education or provide them with a deposit in their own home. Buying a bar or a few coins at intervals after a dip in the spot price will help ensure the best return when you finally decide to sell up. Remember, whatever happens in between, the overall trend in the precious metals market is upward.
- Short-term: As a general guideline, the best time for short-term investors to buy is immediately after a dip. However, the first half of 2023 saw a 7% increase in the Gold price, and according to market experts, the outlook for the remainder of this year is bullish, with a chance of a 17% year-to-year increase.
Where to invest in Precious Metals
Sadly, the Precious Metals investment market has not escaped the attention of fraudsters, so all trading should be conducted through a registered bullion dealer. Gold Stock Investment guarantees the quality and authenticity of its minted Gold and Silver coins and Bullion bars. Why not contact us and start to invest in precious metals today?
DISCLAIMER: The information above was derived from reliable sources and deemed accurate at the time of writing. However, changes following publication may have affected its accuracy. Such changes may occur without notice, and Gold Stock Investment cannot be held liable for inaccuracies in this article’s content or how a reader may choose to interpret it.
