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When it comes to long-term investment success, having a well ballanced and diverse portfolio is crucial. While there are numerous options available, ranging from index funds to real estate, cryptocurrency to government bonds, it's incredibly essential not to overlook the role of valuable commodities like silver and gold in achieving a well balanced amd honest investment portfolio.
While gold boasts a higher value per ounce and the potential for significant growth over time, silver offers accessibility at a more affordable price point and holds industrial value in today's economy. Investing in both have their pros, for different reasons, and not putting all your eggs in one basket is definitely somethingnto think about. If you're considering adding precious metals to your portfolio, it's important to understand the circumstances when investing in gold, rather than silver, may be a wiser choice for long-term financial freedom.
Here are my four key situations where gold would prove to be an advantageous investment:
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Gold has been a mainstay in well-diversified portfolios for centuries, exhibiting consistent growth over time. Gold's value has shown remarkable resilience, appreciating over 5,000% since the early 1970s when U.S. management of a global gold-exchange standard essentially ended. While silver's value has also increased over time, it hasn't experienced the same magnitude of growth as gold. Historical spot price data reveals that since 2000, gold has witnessed an increase of over 500%, whereas silver's growth remains around 360% for the same period. However, it's crucial to view gold as a diversifier rather than expecting returns comparable to traditional stock and bond investments. As the purchasingnpower of currency devalues, due to inflationary pressures, the value of gold and silver will continue to increase.
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Silver is prone to greater price swings, whereas gold tends to maintain a more stable value, even over shorter time periods. Consider the first six months of this year, where silver's price fluctuated between approximately $20 and $26 per ounce, representing a 30% difference. In contrast, gold experienced a narrower range, moving from around $1,830 to $2,040, reflecting an 11% difference. If you prefer consistency and stability, especially in the face of significant price fluctuations, gold may be the metal of choice. I have mentioned this on numerous occasions- its never about TIMING the market, its about time IN the market
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Investing in silver offers the advantage of affordability, allowing you to purchase multiple ounces of silver for the price of a single ounce of gold. I for one believe that silver bullion coins can be particularly appealing for investors who find gold to be expensive. However, if your portfolio boasts robust financial strength and you can comfortably allocate funds without surpassing the recommended 5% to 10% threshold, investing in gold becomes a viable option. Think of silver as your gateway drug to the world of prexious metals. You may start by buying silver, but the allure of the yellow shiny metal always gets you in the end.
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Gold emerges as the superior option for investors seeking protection against an impending recession. While silver benefits from significant technological demand, driving its long-term price, it can be more vulnerable to broader economic shifts due to its extensive industrial usage across various sectors. In contrast, gold tends to exhibit an inverse relationship with other markets during downturns. When the stock market experiences a decline, gold's price typically rises. This unique ability of gold to preserve value during economic downturns adds to its allure for certain investors.
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Both silver and gold hold value as valuable additions to your investment portfolio. However, based on your investment objectives and individualised strategy, gold may offer distinct advantages over silver. Factors such as long-term growth, stability, overall value, and acting as a hedge against recession make gold a compelling choice. Thinking of explore the possibilities of investing in gold today?? Remember, the key to success lies in diversification and making informed decisions that align with your investment goals.
If you dont own any precious metals, then why not tell us? As a community we encourage ALL engagements and encourage everyone to take the plunge and own at lease a sinlge ounce of silver or a fraction of gold. If your struggleing to find a safe and secure place to buy, reach out to the community as there is always someone willing to offer their time and advice to help you out.
40+yr old, trying to shift a few pounds and sharing his efforsts on the blockchain. Come find me on STRAVA or actifit, and we can keep each other motivated .
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Want to find out more about gold and silver? Get the latest news, guides and information by following the best community on the blockchain - #silvergoldstackers. We're a group of like minded precious metal stackers that love to chat, share ideas and spread the word about the benefits of "stacking". Please feel free to leave a comment below or join us in the community page, or on discord.
I’m waiting for one more shot at playing the silver to gold ratio. Looking for under 60-1. 55 would be lovely.
!PIMP 69
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!PIMP this boring ass post to the #moon ffs
You must be killin' it out here!
@summertooth just slapped you with 5.000 PIMP, @welshstacker.
You earned 5.000 PIMP for the strong hand.
They're getting a workout and slapped 2/3 possible people today.
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You received an upvote of 99% from Precious the Silver Mermaid!
Thank you for contributing more great content to the #SilverGoldStackers tag.
You have created a Precious Gem!
You a !PIMP Precious the Silver Mermaid, btw do you eat seafood?
You must be killin' it out here!
@summertooth just slapped you with 10.000 PIMP, @ssg-community.
You earned 10.000 PIMP for the strong hand.
They're getting a workout and slapped 3/3 possible people today.
Read about some PIMP Shit or Look for the PIMP District