What Advantages Does Holding Physical Precious Metals Have?
Many assets and investments can be complex. There are contracts, shared liability, and other challenges that can act as barriers to entering the market. Precious metals are easy. You can even enter a coin shop and pick up a few coins the same day if you wanted to. Gold is typically more liquid and less versatile than silver, but silver is cheaper and easier to invest in for beginner investors.
It is Technology-Free
Unless you choose to buy from online dealers, investing in precious metals can be a technology-free process. All you have to do is buy, then hold your investment until you are ready to cash in on it. You don’t need to worry about balancing portfolios or about what would happen in the (albeit unlikely) event of a total collapse of the internet or central banks. You have the physical assets that can be used when you need them.
Higher Return on Investments
Precious metals typically have a much higher rate of return than other investment vehicles. In the last 15 years, gold has had an average return of 315%, which beats out the Dow Jones Industrial Average’s return of 58% and the Fidelity Investment Grade Bond Fund’s (FBNDX) 127% return.
There is No Minimum
Finally, one of the biggest advantages of holding physical precious metals is that there is no minimum purchase required to begin except for gold based IRA accounts. Often, investments will require a certain minimum amount to enter the market. This isn’t the case with gold and silver unless purchasing from an online dealer requiring a minimum amount for shipping.