Precious metals have always provided a safe form of investment. Gold, silver and other precious metals are not just turned into jewellery. Buying gold or silver is another option to complement equities and other securities. A well-diversified portfolio undoubtedly helps to protect against inflation risks. There are good reasons for investing in precious metals.
Investors who are anxious about a stock market collapse, in particular, like to focus on physical precious metals, such as silver or gold bars. These investors are often speculating on an increase in prices – as gold, silver, platinum, etc. are only available in limited quantities, there is a shortage of these raw materials as soon as demand grows. As a result, the price of gold and silver then rises too.
It is not just private investors who put their money into precious metals: institutions, such as the International Monetary Fund (IMF), the Swiss National Bank and the US Federal Reserve, also use gold reserves as a crisis-proof financial investment. In fact, the USA currently has the highest gold reserves in the world.