No one wants to be caught off guard in the face of an economic crisis or a collapse in stock markets. To be sure that you are prepared for such scenarios, please answer the following 5 questions.
- Do you own physical precious metal?
Now is a time when the authorities of many countries of the world are injecting billions of dollars into the economy. Therefore, national currencies are significantly depreciated. However, physical gold and silver will not suffer from this process. These precious metals can protect an investor's portfolio during a period of unstable economic situation. Therefore, investments in coins and ingots of gold and silver will preserve the capital and serene state of the investor's spirit in times of crisis.
- Are you ready for an increase in inflation?
The Fed claims that the inflation rate will soon drop. However, many investors do not believe this, since the consumer price index remains steadily high. As a rule, the inflation rate rises sharply, and then drops suddenly over several months. Inflationary processes can get out of control of regulators, which will lead to hyperinflation. The gold reserve in the form of investment coins and bullion has always helped investors during the period of increased inflation and crises, since the yellow metal is a protective asset that can hedge a portfolio in the face of rising consumer prices.
- What to prefer: gold or silver?
Yellow and gray precious metals have many similar characteristics. First of all, this is money in physical form, which can be easily taken with you. They are very liquid, so it will not be difficult to sell them almost anywhere in the world. However, gold and silver prices can behave differently. For example, yellow metal quotes typically rise during a decrease in economic growth, while gray metal quotes typically fall under such conditions. Gold rises in price with collapses in stock markets, and silver does not increase in price or even becomes cheaper. This is more because central banks buy yellow metal for their reserves. This factor supports the gold exchange rate at a high level. Each metal has its own advantages. In the current conditions, it is best to buy both precious metals - gold and silver. This will make it possible to prepare for absolutely any market situations.
- Where to store investment coins and bullion?
Precious metals should always be kept at hand in case they are needed in an emergency. However, this does not mean that they should be within walking distance of their owner. To avoid their theft, you should not keep gold and silver at home. Do not post your photos with the image of coins and bullion on social networks. If your home address is not specified in the message, then this does not mean that the robbers will not be able to track it using special services. In social networks, it is better not to show your wealth. It must be remembered that as prices for precious metals rise, they can be targeted by robbers. Choose banking institutions as the storage place for your precious metals.
- What will you do in case of a sharp decrease in the quotes of precious metals?
It should be borne in mind that gold and silver quotes can sometimes decrease sharply. In this case, a plan of action should be clearly formulated. Even if this plan is never implemented, the very fact of its presence will allow you to act confidently in the market, and not think and doubt. Do not panic and sell off your inventory at a low price.
The current forecast for the quotes of precious metals is quite optimistic, which cannot be said about the situation in the economy. However, even if the situation changes, each investor should invest 10% of their savings in precious metals in order to feel confident.