How Not to Lose $400,000 in a Month: Invest in Gold and Silver
Building a nest egg or a retirement fund can be a risky business. Unless you invest wisely, you could see huge chunks of your assets swirling down the drain.
Recently, we had the opportunity to advise a customer on how to make the most gain from her capital and save herself from experiencing a significant loss. We recommended she invest in precious metals like silver and gold bullion.
Unfortunately, she chose to stick with the stock market – a decision that cost her $400,000.
All Investments Involve Risk
No matter where you put your money, you risk losing some or all of it. Put it in the stock market, and the market could plummet, leaving you with pennies per share. Even if you put it under your mattress, your house could burn, or a thief could come, and it would be gone in a flash.
What about a standard savings account? Wouldn’t it be safe from loss there? Well, it would be reasonably safe, but the risk there is that economic conditions could make your dollars worth less than before, so essentially, you would lose value.
Like all these other investments, the precious metals market does fluctuate. There are times when you can make more, times when you can make less, times to invest more, and times to hold back. For this reason, having an advisor makes all the sense in the world.
Overexposure Spells Trouble
Let’s talk about overexposure.
Ideally, you would spread the risk over multiple markets. For example, you might have some of your funds invested in the stock market, some in real estate, and some in precious metals. The problem with our customer’s portfolio was that it was too heavily weighted towards stocks. In other words, she was overexposed to the stock market.
Overvalued markets typically spell trouble. A market is overvalued when the current price soars far above what is justified by its profit projections.
This points to another problem our customer was facing. The stocks she had were vastly overvalued. As watchful advisors, we knew it was just a matter of time before the price collapsed.
It was time to get into other markets and reduce the risk of overexposure to an overvalued market.
Advice, Choice, and Outcome
We recommended that she diversify her investments by investing some of her funds in gold and silver. We explained why this made sense and how diversification would benefit her. While our customer invested some of her holdings in gold and silver, she still maintained a significant exposure to the stock market, which she is always free to do.
She chose to hold her full faith in the stock market.
Sadly, as we followed the news, we watched our customer’s investments lose value rapidly. By the time she got out of her failing investments, or at least as of the time of our conversation with her, she had lost $400,000. Few people can afford to lose this much, and it was a sore loss for her.
Fortunately, there is still time for her to make better choices, and we are here to help.
Why Invest in Gold and Silver?
It’s unlikely our advisors would recommend that you dump all stocks and commit everything to precious metals. However, having a strong portfolio requires diversification. What better way to minimize the risk and gain opportunities than to invest in physical gold and silver?
Here’s why that’s true.
The Precious Metals Market Is Different
The fact that the precious metals market doesn’t follow the same trends as the stock market gives you a lot of protection. Just because the stock market crashes, that doesn’t mean your gold and silver will also lose value.
In fact, there have been many times in history when gold went up as stocks went down.
Gold and Silver Have Intrinsic Value
In the long term, you can never lose everything by investing in precious metals. No matter what any of the markets do, your gold and silver will always have intrinsic value. There is a limited supply of these precious metals. The low-hanging fruit has been picked, which is causing miners to expend more time and energy to extract lower-quality ore. In fact, it’s possible that we’ve hit peak gold and silver with recent annual production declines.
Gold and silver are solid and weighty. It’s reassuring to hold them in your hands, knowing that they will never be easily destroyed or made worthless. After all, while stock certificates can lose every dime of their value, precious metals will never be worthless.
Of course, many coins also have collector’s value, along with intrinsic and market value. Knowing the best coins to invest in helps you make the most of your what you put into precious metals. We can help you choose rare or old coins, bullion coins, or gold and silver bars to invest in whether you’re a collector or investor.
Hedge Against Inflation
It’s often said that precious metals are a hedge against inflation. What does that mean? Unlike dollars, they can’t be printed up on-demand. There will only ever be the gold and silver that exist in nature. These metals protect you against the decreasing value of fiat money.
The U.S. currency has been made legal tender, but it can never have the stability of value that precious metals have. In today’s current economic situation, security against inflation is key. Just take a look at the current US economic numbers!
More Control Over Your Investment
The high liquidity of precious metals gives you added control over your investment. You can easily sell gold and silver whenever it makes sense to do so, and you can buy very quickly, as well.
You can increase or decrease your investments in precious metals on very short notice, giving you the power to control your exposure.
All in all, investing in precious metals as a part of your overall investment portfolio makes sense. Beyond that, knowing when and how much to invest in any market is critical. For that reason, we suggest you talk to your friendly precious metals dealer in Atlanta.
Getting Precious Metals Investing Advice
Finding the right gold and silver dealer in Atlanta is easy. All you need to do is go to the place with precious metals experts who have years of experience and a broad network of industry leaders, buyers, and sellers. At Atlanta Gold & Coin Buyers, we not only fit that description, but we are ready to help you with sound investing advisement.
When you turn to us for precious metals investing advice, you get the real picture of what’s going on in the investment world. You get clear and reliable information that helps you make the right investing decisions.
What’s more, we also offer other precious metals services, from conducting appraisals to selling or buying rare coins, gold, and silver.
For the precious metals knowledge and services you need, contact us at Atlanta Gold & Coin Buyers. Don’t wait for your next $400,000 loss to make the best investments for you!
Give us a call today at 678-515-5763!