Precious metals are becoming recognized not only as commodities, but as currencies that cannot be printed and devalued. They also offer a hedge during these times of currency devaluation and increasing geopolitical risks.
As a hard asset, precious metals are a great way to diversify your portfolio from paper profits, digital trading, and currency creation. This allows gold and silver to stand as hedges against any higher risk investments.
Today, investors use gold to hedge their funds, as a safe haven, and as a direct investment.
A hedge investment is one that can offset the losses in another asset class. Investors will often buy gold to hedge against the decline of a currency, for it is a great defense against inflation. Research has also found that gold is the best hedge against a stock market crash. In fact, gold prices increase dramatically after a crash. Stockholders will often sell their stocks and buy gold.
If you’ve bought your fair share of gold, or are looking for a cheaper alternative, silver is the second best precious metal to invest in.
Like gold, silver also holds its value. Other benefits of silver include the fact that it has never been defaulted on. By owning physical silver, there are no default risks, which is not something that can be said about all investments.
Silver is one of the best forms of money because it can’t just be created, like paper money or digital currencies. It has never been defaulted on and there is no counterparty risk, unlike stocks or bonds. In fact, silver has been used as currency more often than gold.
Keep in mind, we are talking about physical gold, not ETFs or certificates. Owning physical silver is beneficial over ETFs because it is a hard asset. There aren’t many investments that you can carry in your pocket, and precious metal is one of them. With physical silver, you are hedging yourself against any kind of hacking and cybercrime that can affect digital investments.
An ounce of gold is more expensive than an ounce of silver, so an individual would need to buy more silver to protect the same amount of money, but it would be easier to make smaller purchases. When it comes time to sell the silver, you wouldn’t have to sell a full ounce like you would in the case of gold, because the denominations can be smaller.
In addition, there are numerous industrial uses for silver in almost every major industry, from electronics to medicine to solar energy. The metal is significantly electrically conductive, thermally conductive, and reflective. We would not have a lot of the amenities we have today without the use of silver, including cell phones.
Lastly, the world demand of silver is growing. Most major government mints are experiencing a rise in sales of silver, especially in China and India.
There are many ways to invest in silver. The way we recommend is buying physical silver, such as bars and coins.
Bars are the most effective way of buying the precious metal. They are available in various sizes and weights and can be purchased from many banks and bullion dealers. It is recommended individuals do their research before buying to choose a trusted dealer.
Coins are one of the most popular ways of buying silver because you can buy it in small amounts and it is more portable and convenient, but it is usually sold at a higher markup due to the cost of designing and minting the coins.
You will also want to find a plan to store the silver that can protect your investment, such as a bank or in-home safe.
If you don’t want the hassle of owning physical silver, there are other ways to invest. Stock certificates and online portfolios are less tangible but make it easy to buy, sell, transfer, and possess precious metals.
ETFs, or Exchange Traded Funds, are assorted assets that are bought, sold, and traded, similar to the stock exchange. Precious metal ETFs are becoming more and more popular.
The ETFs are backed by actual silver bullion stored in vaults and there are many options on the market. Again, you will want to do your research before jumping in and investing. Many like ETFs because they don’t have to worry about the cost of holding, protecting, and transporting the asset. If the cost is no issue, however, buying physical silver and having a trusted bank protect it for you can assure safety. The peace of mind is worth it.
Storing precious metals in Swiss vaults has been a proven way for those who would like to protect their gold to do so safely with trusted banks. Switzerland has historically been one of the leading countries in terms of offshore gold storage. The country has one of the world’s largest reserves of gold per capita.
Whether it’s a bank or a private vault, Switzerland’s options for storing metals have always been held in high regard.
Alpen Partners offers its clients the opportunity to buy and store physical gold and silver in Switzerland. While most ETFs and international financial centers outside of Switzerland only offer the possibility to own “paper” gold and silver, our solution allows our clients to own their own gold and silver bars.
The gold and silver bars can be stored at one of our partner Swiss private banks, either in the main vault of the bank or in a private safe deposit box. We also offer our clients the opportunity to store the precious metal bars in private vaults outside the banking system, either in a Freeport or at ultra-safe private vaults in Switzerland.
No matter the problem, Alpen Partners will handcraft a solution for you. We know that there is no one-size-fits-all when it comes to financial success. Our approach involves working with our clients to make a unique plan to meet their needs. Rest assured that we will work hard to guide you through the process of meeting your financial and personal goals.
Contact us to enhance your financial plan today.