If you see bumps in the road ahead, it’s best to prepare yourself for what’s to come. Right now, for example, we’re seeing signs of inflation continuing to speed up. On May 12, 2021, CBNC reported that “inflation accelerated at its fastest pace in more than 12 years for April.” That same day, gold prices went up.
It’s the sort of thing we’ve all seen before—when folks see signs of economic turmoil on the horizon, they turn to gold as a safe haven for their wealth. It’s a time-tested strategy for hedging against inflation, but if you’re only looking at gold, you may be missing out.
Diversification doesn’t end with gold.
Diversification is a time-tested way to help safeguard your wealth. Every type of asset carries with it a level of risk, but by including multiple asset classes in your portfolio—by putting your eggs into more than one basket—you can lower your level of financial risk.
When considering precious metals for a portfolio, the first thing that comes to mind is gold. And for good reason! Gold is a time-tested safe-haven asset, and its history as a store of wealth goes back thousands of years. Of course, you don’t have to go that far back to find out why. On May 11, 2021, for example, Reuters reported that gold prices had increased more than 3% the preceding week after passing the $1,800/oz. threshold.
According to Carlo Alberto De Casa, chief analyst for ActivTrades, “Interest in [gold] bullion remains high due to inflation fears and weak U.S. jobs data. [Individuals] are now seeing gold as a hedge against inflation…. Even technically, gold is in a strong positive trend.”
But if diversification is your goal, it’s important to consider adding more than just gold to your portfolio.
Be sure to consider silver, platinum, and palladium.
On May 4, 2021, a MarketWatch headline read, “Palladium touches all-time record high above $3,000 an ounce.” In a recent interview with CNBC, Chris Wyllie, chief investment officer at Connor Broadley Wealth Management, said that while they still suggest diversifying with gold, they “prefer silver at the moment, which has got industrial applications as well. So with a very buoyant global economy, that’s another string to its bow.”
Diversification is about responsibly lowering your risk by allocating portions of your portfolio to different assets and asset classes. With individuals turning to precious metals beyond gold, now may be the perfect time to look into allocating a portion of your portfolio to silver, platinum, and palladium.
You can even hold precious metals in an IRA.
Owning precious metals doesn’t end with personal possession. If you’re seeking additional forms of security, you may consider holding precious metals as part of your retirement portfolio with a self-directed precious metals IRA.
Before deciding which of these options are right for you, call U.S. Money Reserve. It’s important to have as much information as possible and feel safe knowing that you made the right decisions for your unique situation. When you call, a dedicated Account Executive will walk you through all your options and help you diversify your portfolio with precious metals. Whether you choose to personally secure precious metals or open a precious metals IRA (or gain extra diversification by doing both), we’ll be with you every step of the way.
Gold is just the beginning. Now is the perfect time to explore the wider benefits offered by diversifying your portfolio with additional precious metals.
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