Are you interested in growing your wealth? Would you like to secure your future? Is diversifying your investment portfolio a priority for you? When you want your wealth to thrive and secure a glowing future, then it is time to invest in precious metals like gold and silver.
A Golden Moment
The passing of time has seen the rise and fall of economies. From ancient civilizations to the modern era, the turning of the economic wheel has brought cultures and governments up and down.
These days, investors have a wealth of choices in terms of where to place their money. There are different investment opportunities that you can look into but gold – touted as the “granddaddy” of alternative investments – would be your best bet. Furthermore, physical gold, as compared to “paper gold,” or exchange-traded funds, will more likely give you a healthy return on investment.
Physical gold and silver can come in many forms. They can be in the form of coins, bullions, or bars. While the former is considered to be the topmost investment opportunity, the latter is still deemed to be a safe and lucrative choice.
Reasons to Invest in Physical Gold and Silver
There’s a treasure trove of reasons why investing in gold and silver should be one of your top priorities. When you are looking to grow your money, you can certainly benefit from the many advantages these precious metals offer.
Gold has a finite supply. Its rarity makes it a much sought-after and desirable commodity by governments and individuals alike. It also lowers the overall volatility of an investor’s portfolio.
Silver is also less volatile compared to crypto currencies. It holds value well even in economically challenging times. Its performance over time has showed a steady and solid pace that makes it a safe investment.
Simple to Trade and Own
The concept of owning gold is fairly simple. It is easy to buy and easy to sell, whether it be in the form of gold sovereigns, bullions or bars. Prices can be monitored easily and has the same recognized value around the globe.
It is virtually indestructible unlike cash and other forms of property that perish in fire or water. Its tactile look and feel make owners enjoy it more and turn it into rare collectibles that can be passed on from generation to generation.
Silver is also easy to own and trade. An ounce of silver here has the same accepted worth anywhere in the world. Since it is 80 times more affordable than gold and has no volume restrictions, it can be easily bought or sold and converted into cash through reputable silver dealers.
Part of a Balanced Investment Portfolio
Their high liquidity and low risk make gold and silver an essential part of a balanced investment portfolio. Both metals can be also be used as a hedge against currency value swings. Investing in gold or silver is a wise move in reducing investment risk across various asset classes.
Depending on your circumstances, a five to 20% investment share in gold would be ideal to help you “ride the storm” during economic downtime’s. Its historical performance has showed stability and has outperformed other types of investments. It is considered a safe haven investment that is more profitable than the low interest rates of regular bank accounts.
Silver also has a lower entry cost at 75/80:1 and higher returns compared to cash and other usual savings accounts.
No Counterparty Risks
Unlike paper currencies, physical gold and silver are likely to remain steady (and may even rise) in the event of a major banking or financial collapse. Devaluation and fluctuations in currencies will also less likely affect gold and silver, retaining their spot prices.
In terms of fraudulent activities, gold and silver remain protected. Gold and silver ETFs involve third parties, which exposes them to fraud risk so it is better to invest in physical gold or silver. Similarly, investments that involve online trading or shares can also expose you to cyber-fraud, which is highly unlikely to happen when investing in physical gold or silver.
Investing in gold or silver also affords you some tax benefits:
- No CGT: Sovereign and Britannia coins are considered legal tender and, therefore, not subject to capital gains tax.
- No VAT: No value-added tax on invested gold. Silver stored in a vault outside the EU is not liable to pay VAT. In addition, silver coins can have VAT-free delivery if the EU double taxation treaty is initiated.
- Inheritance Tax: Gold and silver can be given away to family members or loved ones as gifts. It is a tax-efficient method of inheritance planning as long as it is given not less than seven years after the death of the giver.
- Pension Tax Relief: Qualified gold bars bought as part of a pension may get up to 45% of tax relief. However, physical silver may not be considered as qualified for pension tax relief. It is best to consult with a certified accountant or independent financial advisors regarding this.
Riches at the End of the Rainbow
It would be wise to heed these nuggets of wisdom. Gold and silver investments can definitely help you secure a bright and financially sound future.
The years of experience and expertise of silver and gold dealers and professional numismatists will help you diversify your portfolio with tax-efficient solutions and expert advice leading you to achieve long-term protection for you and your loved ones.
They can also provide you golden insights into the current market so you can make relevant and more informed choices about your gold and silver investments. Dedicated team members will help guide you in making the best value purchase and balanced portfolio. These insights will lift the silver lining in your investment dilemmas and lead you to your own glowing pot of gold.
About Daniel Fisher
Daniel Fisher formed Physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.