The recent 2016 financial crises have left many investors in a shaky position as markets crashed and bubbles burst. In the midst of it all something of note stood out. Gold and silver prices went skyrocketing and continued to rise despite the turmoil. This isn’t some fluke or anomaly the world witnessed; in fact, history has revealed that when dire conditions afflict the investment world, investors turn to physical wealth to provide financial security. This is why precious metal bullion is currently considered one of the most important investments anyone can make. Every investment strategy should include precious metals in its portfolio.
One of the major boons of investing in gold and silver is that these metals actually increase in value during financial turmoil. An example of this was seen during the 2008 financial crisis, when the stock market plunged and investors flocked towards gold — raising the price of gold bars over $2000. Overall the value of gold increased 32% a year between 2008 and 2013.
That trend has continued as other events such as the 2012 European debt crisis and the recent Brexit decision further increase doubt in the stability of financial markets. After Brexit, the gold price increased yet again, and many world banks (like the IMF or International Monetary Fund) clamoured to get their hands on more of it. Just as gold helps reinforce the portfolios of major world players, so too can it help with your personal portfolio.
Although gold gets most of the attention, experts will tell you that silver is just as reliable, and it also appreciates in value during financial hardship. The professionals at Guildhall Wealth Management in Toronto tell us that while there is monetary and aesthetic value to silver, the precious metal retains a lot of its value from industrial utility. Electronics, construction, and other countless industries are in need of it — so its value is not abstract like fiat currency. If you’re curious about how to buy silver or how to buy gold in Toronto, simply contact their professional wealth management team to learn more about opening up a secure, Questrade-approved account, and start building your own personal inflation hedge.
Across the world, we are witnessing disasters and conflicts of alarming scales. The civil war in Syria, the nuclear crisis of North Korea, and the failed military coup of Turkey are some great examples of world-changing troubles around us. To counter this instability, more countries are turning to gold and silver for their national banks in order to give their economies a firm backbone. This type of behaviour is nothing new. Historically, many countries have relied on precious metals as their standard currency.
The strength of gold and silver in your portfolio — or as part of your RRSP — allows you strength and flexibility, as well as a natural hedge against inflation. Any smart investors will realize the direction we are headed and invest in safe and reliable bullion and Guildhall Wealth Management can help individuals to acquire and store their gold and silver assets. Investing today is a great way to protect yourself from the wars, disasters, and failures of tomorrow. Fortunately, gold and silver bullion will always carry value no matter what happens.