Three Reasons to Add Gold and Silver to Almost Any Portfolio

Even savvy, experienced investors sometimes overlook options that could easily improve their results. Investing in precious metals, for instance, can easily be the best way to strengthen a portfolio in several significant respects. A quick look at why precious metals like Gold And Silver so often prove appealing will make it clear why so many investors can be found singing their praises.

A Time-Tested Way to Shore Up Almost Any Portfolio

Most investors today focus either on individual stocks or indices that track the movements of many of them. That is probably the simplest way to encourage the long-term growth of a portfolio as long as an investor remains disciplined.

Working precious metals into a portfolio's composition can end up being the best subsequent step. A portfolio that has been bolstered by positions in valuable metals like gold will often feature improved:

Stability. Few investors have the nerves it takes to weather the worst excesses of the stock markets without queasiness. When stock prices become particularly volatile, even seasoned investors often find themselves feeling nervous and ill at ease. The movements of the prices of precious metals can help smooth out these fluctuations. A portfolio that includes significant holdings of silver or gold will generally end up tracking more stably over time because of it.

Liquidity. Well-known stocks tend to be fairly liquid, but other types of investments are often less so. An investor who is unable to easily liquidate part of a portfolio at an important time might miss out on an opportunity or sustain some otherwise-avoidable losses. Precious metals are so actively traded worldwide that liquidity is never an issue. A portfolio that contains even small amounts of less-liquid assets will often benefit from the addition of precious metals to its lineup.

Resistance to inflation. Even though inflation is currently at low levels by historical standards, many investors fear it will ramp up in the future. Sustained inflation will eat into the returns produced by a portfolio, sometimes even to the point of turning winning positions into losers. The value inherent in useful, scarce metals like silver and gold tends to make holdings of them resistant to the ravages of inflation.

A Simple Way of Making Any Portfolio More Resilient

Investors of all stripes can appreciate benefits like these, and most seek them eagerly. What fewer of them realize is adding precious metals to a portfolio will often produce improvements of these kinds and others all at once. With precious metals now being so easy to acquire and sell, most investors would do well to learn about them.