If you’re an investor interested in diversifying your portfolio, then you might be considering purchasing precious metals like gold and silver. One of the most common ways to make this investment is to buy gold and silver bullion.
Bullion is the term used for investment-grade precious metals like platinum, gold, and silver. It is weighed by Troy Ounces or in Grams and can be purchased in the form of coins, rounds, or bars and ingots. In Canada, gold must have a purity of 99.5% and silver must have a purity of 99.9% to be considered bullion and thus tax exempt.
Bars are generally purchased in bulk and weigh more, whereas coins are smaller and more affordable. 1oz gold coins are generally popular, though any kind of bullion is attractive to investors who are looking for a physical asset that is known historically as a good investment.
This is because precious metals tend to retain (and even increase) in value during times of economic crisis. Gold and silver experts like the ones you will find at Muzeum can tell you that precious metals have an interesting way of being valued, and it has a lot to do with speculation.
Predictions for 2020
Some experts are anticipating that gold will do even better in 2020 after rising 17.3% by the end of 2019. This comes as more economic uncertainty rises and with predictions of an impending recession. That being said, others are not so sure that gold will continue to do well as they anticipate an increase in global economic growth.
It’s these kinds of predictions that influence the spot price of precious metals like gold, and why the market value fluctuates on a daily basis. As you can see, though, the value is highly dependent on how people tend to view the current geo-economic and geopolitical climate.
Should You Buy Bullion?
Like any investment, there is always some form of risk involved. The good thing about bullion, though, is that you can keep it for years and years and across generations, and it will never be worth nothing. This is because gold and silver have been highly valued throughout human history for their properties as well as for their representation of wealth. So as long as people continue to value gold and silver, they will always be worth something.
There are other reasons why bullion makes a good investment:
- Considered a crisis commodity
- Used as a hedge investment
- Part of portfolio diversification
If you think this is the investment for you, make sure you always do your research first and that you are purchasing bullion from a reputable dealer.
Should You Sell Your Bullion?
Some might argue that now is the perfect time to sell your bullion, especially considering how well gold prices have been doing. With the views of how well gold will do in 2020 split as they are, you may want to sell your gold instead while the prices are still relatively high.