When people talk about investments, more often than not, it is always about the ROI (Return on Investments) that they focus on. The focus on ROI however, often makes investors to overlook risk factors, which is never a good thing. What is important when it comes to an investment or investments is not the short term returns that it provides, it should and must always be about the long term stability of the purchasing power of your savings.
The simplest of examples of this case scenario is the one thousand dollars that you managed to save 2 years ago. What one thousand dollars would have allowed you to buy in 2014 cannot be bought in 2016 due to a variety of factors, with inflation leading the pack. As a matter of fact the value of three hundred dollars in 1984 is equivalent to more or less one thousand dollars today and this is what investments should be all about – protecting your wealth from the wrath of inflation.
So, how do you protect your wealth from depreciating in value? The answer to that question lies in the realm of precious metals – especially the realm of gold and silver.
If you ever wondered why gold is and silver seem to be the only items that go up in value when markets crash, it is because most seasoned investors are into the habit of dumping stocks and cash for gold or silver during times of economic uncertainty which also adds to the fires of economic gloom. However, buying gold or silver at the turn of an economic turmoil is never advisable because, prices are simply higher and if you get caught at the wrong end of the wave (when precious metal prices meet market resistance and take a turn and spiral downwards) you would probably end up losing everything.
Hence, the most advisable time to buy precious metals is during times of economic calm, when in most cases, prices of gold and silver are at reasonable prices and affordable. Another question that most new precious metal investors keep asking is how much gold do I need to buy to protect my wealth; the answer to that question is relatively simple, buy what you can afford without having to make too many changes to your current lifestyle. The usual modus operandi used by seasoned investors is to allocate anywhere between 10 – 30 % of their savings for buying precious metals in the form of gold or silver bars, coins or even ingots.
Some investors prefer to buy PAMP gold bullion which is a favourite for ardent gold investors who buy P.A.M.P gold not only for investment purposes, but also for aesthetic purposes. The gist of this entire article is the fact that gold has been the only real money in human history that has not failed us and one reason for this is that whatever product or service you could buy with an ounce of gold a hundred years ago, you could still buy the same product or service now with the same one ounce of gold – perhaps even more.