Using Gold as an Investment Platform

Many investors who are still holding out hope for their stock and real estate assets will quickly point out one of the basic truths of precious metals investing: Nobody ever got rich overnight on precious metals investments.

For those wise enough to purchase precious metals, the obvious answer to this is: That’s what we like about them. Nobody gets rich overnight with precious metals, gold, silver or platinum, but can you name anyone who lost everything in one bad week for their favorite metal?

When you invest in precious metals bullion, it’s a safe investment. Does that make it the best investment?

Put it this way: You never really want to put all your eggs in one basket. If you talk to a smart financial advisor, one of the first things they’ll tell you to do is buy up some gold, silver and platinum. And then they’ll tell you not to be afraid of taking a chance on non-metals investment.

Precious metals bullion can keep you safe, but it’s rare to see the kind of overnight surge in metals value that would put you way ahead in a short amount of time. With precious metals, silver and gold in particular, it’s all about safety. It’s not a way of going from rags to riches, but a way of taking what you have and making certain you don’t lose it to one bad week.

What else to invest in, besides precious metals, is, of course, up to the individual investor. However, in a recession such as we’re experiencing now, it would be a tad foolish not to keep a healthy portion of your savings in something safe and solid like gold or silver bars or coins. Beyond that, your options really are limitless.

Over the course of a few years, gold and silver tend to be worth more over time. If you invest in gold today, you’re very likely to have more money than you do now when 2012 comes around. This surplus can be put towards any other financial pursuit you so choose, leaving a healthy sum in gold so as to protect yourself should a certain other investment go belly up.

Simply put, you don’t take risks with your primary savings account. You build that up until you can afford to take some of it out and put that into a slightly riskier investment. To put it quaintly, precious metals is simply a great way of allowing yourself to make money on other investments without having to “bet the farm” as it were.

The only real questions regarding precious metals right now: Why did it take investors in the US so long to catch on? It really wasn’t until the last year or two that we really saw that big boom in metals investing.

With any luck, the investors of today have learned from the past decade or so, will learn from this recession, and will choose to keep much of their assets in a solid asset like gold and silver in the future.

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Martha Cooke

April 5, 2009