WHY INVEST IN PRECIOUS METALS?
According to Ibbotson Associates, precious metals are the most positively correlated asset class to inflation. From a strategic point of view, Ibbotson determined that portfolios could reduce risks and improve returns with a 7-15% allocation to gold, silver and platinum.
Gold should be an important part of a diversified investment portfolio because
its price increases in response to events that cause the value of paper investments, such as stocks and bonds, to decline. Although the price of gold can be volatile in the short term, it has always maintained its value over the long term.
Like gold, silver is part of the precious metals asset class, and can act as a hedge against inflation and a portfolio diversification technique to mitigate geopolitical, monetary and systemic risks. Like gold, silver is a store of value and has retained its purchasing power over long periods of time.