Gold has edged higher in each of the past nine years, and it is set to close off its decade-long bull market. Storage & Insurance: Now that you have bought physical gold, you will want to keep it as safe and secure as possible. This may well mean paying for another secure storage facility which is a highly recommended option, particularly if you are buying in large quantities. If you want your bullion to be properly insured, then you may also have to invest in a professional storage solution or specialized third-party insurance.
Traditional investments involve silver coins and silver bars. Where silver can be a superior investment to gold is in the fact that silver, being a metal less precious than gold, can be invaluable in crisis situations where both metals are rising in value but silver, due to its lower value per weight, would be more widely accepted than gold for its ability to serve as a medium of exchange for smaller transactions. Stories abound of a couple gold coins buying a whole city block during hyperinflation in Wiemar Germany, but those same gold coins might not be as useful when it comes to exchange for daily necessities such as food or water.
Regardless, just as in every single investment, before getting into the market one must weigh the costs, benefits, and risks involved. Gold and silver is an investment similar to company stock in that you can trade via investment firms. However, gold and silver will not be affected by inflation or deflation at a level comparable to stocks.
Owing to its image as a stable store of value when others are shaky, gold has held up better than other commodities, but it still hasn’t been a dynamic investment. Over the past century, the price of gold, adjusted for inflation, has risen by an average of just 1.1 percent a year, compared with 6.5 percent for U.S. stocks. Even the 10-year U.S. Treasury bond, considered the most risk free asset in the world, has produced higher annual returns.
Although palladium is now at a higher price point than gold, it is still very much an investment that any type of trader can make. Like other precious metal investments, it is something you can use to add great diversity to your portfolio. It is also becoming very accessible to all retail traders thanks to being on offer from many of the top online brokers.