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Monday, May 14, 2012

Precious Metals; their Pros and Cons

Over time, precious metals are one of the most viable options to choose when investing in long term. Let me explain why.

First, let's go over what investing in precious metals are. To make a huge definition short, it is basically investing in gold, silver, etc. Over the long term.

The reason why I would actually agree with anyone who says that precious metals is a decent investment is for the first reason, the chances of profit.

Which is pretty much guaranteed. Haven't you heard about the people everywhere screaming and protesting about how we are seriously using up the world's resources? Yes, you probably have. As our generation begins to mine out every last bit of gold that we can get, and supposedly the quantity of gold will lower, therefore increasing the overall value of gold. There is quite a lot of agreement regarding it, saying that there is an alarming amount of it being cast aside or thrown away, never to be seen again.

 It's actually pretty much a no-brainer why it will make you money, but here is why you will certainly not lose all of your money. I would say that above all else, it is a far better store of value than an investment. That's extremely important in economic downturns.

Gold has a preset intrinsic utilitarian value; it won't just suddenly flop like companies do with stocks, as companies can be bursting with problems with management, consumers, etc. while Gold, is still Gold. There's no way that gold can suddenly be 50% of its worth in one month, unlike how stocks can achieve that feat.

So in a way, you may not get huge profit, but it is still definitely a great option for those who want to further diversify their portfolio and overall make some dough.

There are a lot of other options to pick from other than gold, which is even better.


  1. As what traderxp broker review site noted gold is one of the most valuable commodities that you can trade. Right now, I am quoting what I read on an article in bulliondesk and it says: "Gold futures were modestly lower in the US on Tuesday when a stronger dollar and the lack of meaningful newsflow weighed on commodity prices."

    1. Yes, I agree. Although there has been quite a significant downturn in its price it should still be part of anyone's diversified portfolio.



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