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Last September Costco, one of the largest retailers in the United States, announced that it was selling gold bars … and they quickly sold out. Walmart later got in on the action too, capitalizing on a renewed interest in precious metals. Investing in gold hit an 11-year high in the same month.
It wasn’t surprising, then, that Costco decided to branch out to sell silver as well. A 25 count of 1-ounce Maple Leaf silver coins are now for sale to members, alongside its already-popular 1-ounce gold bars. But are the silver coins and gold bars really worth buying now? Or should investors look elsewhere? Below, we’ll break down three reasons why you may want to get involved with precious metals now.
Start by exploring your gold and silver investment options here today.
Why you may want to buy precious metals now
There are multiple advantages to investing in precious metals, especially in today’s economy. Here are three that could explain the boost in interest:
It can diversify your portfolio
A healthy portfolio is a diversified one. Gold and silver are both effective ways to achieve that diversification, giving your overall portfolio a bigger buffer for when things go wrong and other assets falter. While your portfolio should be largely made up of stocks and bonds (and maybe even real estate), each investor will benefit from safer, less volatile investments, too.
Gold and silver can fill that role. Just make sure to not over-invest to accomplish that diversity, as most experts recommend limiting your precious metal investments to 10% or less of your larger portfolio.
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It can hedge against inflation
While inflation isn’t as high as it was in recent years, it’s still elevated and above the Federal Reserve’s target 2% goal. Against this backdrop, it makes sense to have an added layer of protection — both for now and for the next inflationary cycle in the future.
Fortunately, gold and silver can help hedge against inflation, as they tend to maintain their value during such periods and may even see a price rise (gold just hit a record high this month). That noted, both medals should be perceived more as a long-term protection mechanism versus a quick way to earn income.
If you view it that way, however, your expectations for your portfolio will be better adjusted for success.
It’s tangible
There’s an inherent, attractive feature of tangible investments like gold and silver. That feature, which you can hold in the palm of your hand, allows you to more easily buy, sell and buy again. While stocks and bonds may sound good on paper, there’s something special about buying gold and silver in person — or online — and safely storing your investment at home.
With the turmoil many Americans have experienced in recent years, this detail cannot be understated — and it may be a big reason why investing in precious metals has spiked when it has.
The bottom line
Whether you’re buying gold bars from Walmart, silver coins from Costco or another precious metal type altogether, now is a great time to get started. By investing in precious metals today, investors will immediately better diversify their portfolio while also adding an inflation buffer mechanism to protect themselves. Plus, it’s tangible. So if they want more — or prefer to sell at a higher price in the future — it will be relatively easy to do so. For all of these reasons, gold and silver can be a worthwhile investment for many Americans right now.