Precious Metal Investment: Is Now a Good Time to Buy Precious metals?
The last decade has seen significantly low returns in comparison to booming 1980's-1990's era. Severe recessions and exceptional levels of market volatility experienced by investors in recent times have shaken their confidence badly.
The anxiety that has surrounded the market in 2007-2008 shows no signals of abating. The capital market continues to be fragile. Finance gurus and policy makers are trying their best to turn the tide, but to no avail. As the consequences of this economic turndown continue to spread across the globe, old beliefs are being eroded rapidly.
Investors currently find themselves in a challenging investment environment. With several economies lacking the momentum and central bankers in certain developed nations holding down key interest rates, it may be challenging for investors to find ways to enhance and sustain their income flows.
Nevertheless, if worry continues to be the market watch word, a significant number of investors in recent times are identifying and seeking new investment strategies in an effort to cope with enduring economic uncertainty and persistently low interest rates. The challenge is bigger-to earn yield in no yield environment.
Alternative Investment Options offer new opportunities to investors to earn greater returns through new and bolder investment strategies. As people struggle with the repercussions of this brave new world, they are beginning to redefine their risk appetite which is a very positive sign.
As more and more investors are focusing on investment procedures coupled with more willingness to venture into new investment approaches to get better yields, investment in precious metals has been attracting a lot of attention lately.
It goes without saying that diversification is one of the most recommended portfolio strategies that have been used by investors for ages. It has been recommended that about 10% to 20% of an investor's assets need to be devoted to assets like gold, platinum bullion, silver and bullion coins. Nevertheless, in today's uncertain economic and political climate, there are a number of reasons for investors to consider investing in precious metals. Some of them are outlined below;
From the year 2001 through the year 2004, the value of the U.S dollar declined considerably, falling 5 percent in just a few weeks. A number of reasons can be attributed for this sharp decline in value, which includes; tremendous increases in the U.S government deficits which totals trillions of dollars, the cost of a prolonged war against terrorism and a huge trade imbalance to name only a few.
Precious metals like Gold, Silver, Platinum and Bullion bars on the other hand are held and traded throughout the world. Their purchasing power in addition is not entirely dependent upon the declining value of the U.S dollar. Precious metals, therefore can offer protection to investors against a falling U.S dollar.
The financial markets today are at an increasing risk from political instability, terrorism and war. As we all witnessed how the markets just collapsed after the 9/11 incident. As incidents like these continue to increase around the world, it is not unreasonable to expect more serious disruptions in financial markets.
Whenever hostilities break out, people naturally gravitate toward the assets that offer them more security. And even today, in our modern world, the asset class millions of people rely on in times of distress is precious metals. They have always been and will likely continue to be a valued form of wealth insurance.
After reaching a high value in late 2007, the stock market bubble burst in the year 2008, and wiped out millions of dollars of investor equity. Since then the major stock indices faced to return to their previous highs. The prices of precious metals however, increased drastically, during the same period. Moreover, many financial experts have predicted and continue to forecast rising gold, silver, platinum, and palladium prices in the months and years ahead.
It is significant for investors to accept the truth and face it boldly. You need to understand the reality of today's volatile market if they want to plan a financial strategy that could help them earn better returns and the reality is that traditionally safe havens are no longer profitable as they no longer enough income in fixed income investments.
The good news is that there are still investment options available for investors with which they can get a chance to earn better yields such as private equity funds. The reality is bitter, but currently there seems to be no quick fixes for today's volatile market.
In recent times of financial crisis, investors find it more challenging than ever to invest their money in assets that are worth their investments. One thing is clear, traditional ways of investing are no longer offering benefits in today's tight economy and they could no longer be relied upon for getting better yields. Alternate investment options offer new opportunities to investors to earn greater returns through new and relatively riskier investment strategies.
Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand. It was established in 2013, with an emphasis on providing the most excellent customer services in the industry. The trading environment offered to investors and traders is unparalleled - devoid of all common mistakes usually prevalent in the financial trading industry. The focused determination to provide the highest quality products, services, and support to clients and customers is what truly sets Capital Trust Markets apart from every other major brokerage firm.
The anxiety that has surrounded the market in 2007-2008 shows no signals of abating. The capital market continues to be fragile. Finance gurus and policy makers are trying their best to turn the tide, but to no avail. As the consequences of this economic turndown continue to spread across the globe, old beliefs are being eroded rapidly.
Investors currently find themselves in a challenging investment environment. With several economies lacking the momentum and central bankers in certain developed nations holding down key interest rates, it may be challenging for investors to find ways to enhance and sustain their income flows.
Nevertheless, if worry continues to be the market watch word, a significant number of investors in recent times are identifying and seeking new investment strategies in an effort to cope with enduring economic uncertainty and persistently low interest rates. The challenge is bigger-to earn yield in no yield environment.
Is Now a Good Time to Invest in Precious metals?
Alternative Investment Options offer new opportunities to investors to earn greater returns through new and bolder investment strategies. As people struggle with the repercussions of this brave new world, they are beginning to redefine their risk appetite which is a very positive sign.
As more and more investors are focusing on investment procedures coupled with more willingness to venture into new investment approaches to get better yields, investment in precious metals has been attracting a lot of attention lately.
It goes without saying that diversification is one of the most recommended portfolio strategies that have been used by investors for ages. It has been recommended that about 10% to 20% of an investor's assets need to be devoted to assets like gold, platinum bullion, silver and bullion coins. Nevertheless, in today's uncertain economic and political climate, there are a number of reasons for investors to consider investing in precious metals. Some of them are outlined below;
1. Precious metals Offer a Solid Hedge against the Declining U.S Dollar
From the year 2001 through the year 2004, the value of the U.S dollar declined considerably, falling 5 percent in just a few weeks. A number of reasons can be attributed for this sharp decline in value, which includes; tremendous increases in the U.S government deficits which totals trillions of dollars, the cost of a prolonged war against terrorism and a huge trade imbalance to name only a few.
Precious metals like Gold, Silver, Platinum and Bullion bars on the other hand are held and traded throughout the world. Their purchasing power in addition is not entirely dependent upon the declining value of the U.S dollar. Precious metals, therefore can offer protection to investors against a falling U.S dollar.
2. Safe Investment Option during Periods of Uncertainty (Wars and Political Unrest)
The financial markets today are at an increasing risk from political instability, terrorism and war. As we all witnessed how the markets just collapsed after the 9/11 incident. As incidents like these continue to increase around the world, it is not unreasonable to expect more serious disruptions in financial markets.
Whenever hostilities break out, people naturally gravitate toward the assets that offer them more security. And even today, in our modern world, the asset class millions of people rely on in times of distress is precious metals. They have always been and will likely continue to be a valued form of wealth insurance.
3. Precious metals Offer Tremendous Price Appreciation and Profit Potential
After reaching a high value in late 2007, the stock market bubble burst in the year 2008, and wiped out millions of dollars of investor equity. Since then the major stock indices faced to return to their previous highs. The prices of precious metals however, increased drastically, during the same period. Moreover, many financial experts have predicted and continue to forecast rising gold, silver, platinum, and palladium prices in the months and years ahead.
Investing in Precious metals: a Wise Investment Strategy for Today's Market
It is significant for investors to accept the truth and face it boldly. You need to understand the reality of today's volatile market if they want to plan a financial strategy that could help them earn better returns and the reality is that traditionally safe havens are no longer profitable as they no longer enough income in fixed income investments.
The good news is that there are still investment options available for investors with which they can get a chance to earn better yields such as private equity funds. The reality is bitter, but currently there seems to be no quick fixes for today's volatile market.
In recent times of financial crisis, investors find it more challenging than ever to invest their money in assets that are worth their investments. One thing is clear, traditional ways of investing are no longer offering benefits in today's tight economy and they could no longer be relied upon for getting better yields. Alternate investment options offer new opportunities to investors to earn greater returns through new and relatively riskier investment strategies.
To keep yourself updated with the latest financial news, visit the official website of Capital Trust Markets
Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand. It was established in 2013, with an emphasis on providing the most excellent customer services in the industry. The trading environment offered to investors and traders is unparalleled - devoid of all common mistakes usually prevalent in the financial trading industry. The focused determination to provide the highest quality products, services, and support to clients and customers is what truly sets Capital Trust Markets apart from every other major brokerage firm.
