Why invest in precious metals?
There are 4 main benefits to having precious metals and in particular Gold within your portfolio or as a long-term alternative to cash saving.
Returns
8% returns have been seen annually (CAGR) over the last 20 years and the future looks promising with the increasing use of precious metals in renewable energy, electric cars, smart tech adoption etc.
Diversification
Historically, gold has given a negative correlation to other asset classes, going up in value when equities have dropped making it a perfect hedging asset that also provides a return.
Market Liquidity & Depth
Gold has the 2nd largest daily trade flow volume globally giving market depth, liquidity and subsequently tight prices and spreads
Risk Management
Allocating a % of your portfolio to precious metals reduces the risk of portfolio volatility. Physical precious metals give title ownership, flexibility and fewer counter-party risks
If you want to learn more about precious metals and their benefits, visit the websites below of these recognised precious metal authorities.
