Australia is known to have the world’s largest gold reserves, of approximately 9,500 tonnes. So Australia has 17 per cent of the world’s total estimated gold reserves of 57,000 tonnes. According to Geoscience Australia, 60% of Australia’s gold reserves are primarily in Western Australia. People have been using precious metals for centuries as currency and investment. People consider gold, silver, and platinum as valuable metals that can be bought and sold. Investing in precious metals can be an excellent way to diversify your portfolio and protect your wealth.
These precious metals are valuable because they are rare and have a long-standing history of being used as a form of currency. Precious metals can be bought as coins, bars, or bullion. You can also purchase them through ETFs or mutual funds.
There are things to consider before investing in precious metals, such as the type of metal you want to invest in, the amount you want to invest in, and where you will store the metal.
Reasons To Invest In Precious Metals
Demand Outweighs Supply
Australia had seen one of the most significant gold rushes in history in 1851 with the discovery of gold in New South Wales. This gold rush changed the colonies into more progressive cities. In recent years, there has been a jump in demand for precious metals, while the supply of these metals has remained relatively static. It has led to the rise in the price of precious metals, and investors are taking notice. Most people in Australia usually invest in gold bullion as a security means.
Holds Their Value
They tend to hold their value well over time. It is especially true of gold, which has been used as currency and jewellery for centuries. As a result, when the economy is struggling, gold prices usually remain relatively stable. It makes gold an excellent long-term investment for those looking to build wealth slowly but surely.
Easy To Invest
They are easy to invest in – You can purchase precious metals through bullion dealers, coin shops, online retailers, or even some banks. You can also invest through reliable online trading platforms. For example, if you want to purchase gold bullion online, it’s advisable to buy it from https://www.goldbullionaustralia.com.au/investing-in-bullion/ or any other reputable website.
Precious metals are a safe investment, as their value is not dependent on the stock market or other volatile factors. The demand for precious metals is also rising due to their use in industry and jewellery. As the world economy grows, the need for these scarce resources will only increase, making them a wise investment.
Protection Against Inflation
Investors are also attracted to precious metals because they offer protection against inflation. As the cost of living rises, the value of precious metals increases, giving investors a hedge against inflation. The rate at which the value of precious metals increases is more than the inflation rate.
High Liquidity Assets
Precious metals are very liquid assets that can be easily bought and sold on the open market. It makes precious metals a good investment for those who may need to cash out quickly or want to take advantage of short-term market fluctuations.
Wide Range Of Products
Precious metals offer a wide range of products to invest in, including gold, silver, platinum, and palladium. In addition, the market now has more readily available products made with these precious metals so that people can own them in their liking of shape, form, colour, and so on.
Tangible assets like gold and silver can’t be destroyed by inflation as paper money can. Owning physical gold and silver gives you a level of financial privacy that other investments don’t offer. Unlike stocks or bonds, precious metals don’t carry any counterparty risk – meaning there’s no risk of the metal being worth less than what you paid. Gold and silver can be used as collateral for loans, giving you another way to access capital. Precious metals are scarce resources that will become more valuable as demand increases.
Investing in precious metals is a wise decision for anyone looking to secure their financial future. Gold, silver, and platinum are all valuable assets that will continue to rise as the global economy falter. Therefore, you can consider investing in precious metals as a secure long-term investment option.