All that glitters…?
Did you know that Gold is the only money that has never failed in the 5,000 year history of its use by humans.
At present there is only enough investment-grade gold on Earth for every living person to have 1/3rd of an ounce.
Gold is a completely private and anonymous investment that is also extremely portable. At times of crisis, gold is that safest investment that also has the greatest potential to increase your wealth.
However, there are some pitfalls and precautions to take before you dip in to your savings. To be accurate, gold isn’t an actual investment as it doesn’t pay out any money. Warren Buffett quotes in his 2009 CNBC interview. He was asked, “Where do you think gold will be in five years and should that be part of value investing?”
“I have no views as to where it will be, but the one thing I can tell you is it won’t do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot – and its a lot – its a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that”
Silver is known as a ‘miracle metal.’ Second only to oil as the world’s most useful commodity.
The world has used up more silver in the last 30 years than has been mined and today silver inventories are at an all time low.
Currently, there is less investment-grade silver available on Earth for investors to buy than there is gold and only enough on earth for every person to have 1/14th of an ounce.
So, aside from being money, silver has thousands of essential industry uses. Silver is the most thermally conductive, electrically conductive and reflective metal on the planet that has no known substitutes.
So the benefits seem very positive, but what are the pitfalls?
Storing your gold or silver costs money – a secure and fully insured vault will cost you money.
Knowledge of the marketplace and knowing when to sell – finding a trusted company to advise you will be putting your trust in someone else’s experience in the marketplace – there are many unscrupulous dealers out there so beware.
This will involve doing your own research and making sure you know what you’re getting in to. A good book to read is ‘Rich Dad’s Advisors: Guide to Investing in Gold & Silver – Protect Your Financial Future.’
Also subscribing to www.moneyweek.com will give you insider knowledge of the industry along with helpful tips on money and how to save it and invest it in all areas.
So, with all the research and effort what can you expect as a long-term return? Savers who invested in gold received a 9.6 per cent annual gain over the past decade and a half, while those who went with a savings account or Isa generated a 2.8 per cent return, according to investment company Hargreaves Lansdown.
Silver has had 2 big bull runs in the last 40 years according to ‘Wealth Daily’ and has always been more volatile than gold. In short, gold is a better option in an unstable economy and most people advise on only putting 3 per cent of your savings into gold due to its unpredictability.
Short or long term investments with security
Investing in property makes great security and can bring in a good short and long term investment if you know what you are doing. Investing in Bridging Finance with UK property as security gives a simple and easy way to make up to 9 per cent on your investment, without any of the hassle of property maintenance, renovation, buying, insuring or selling the property. So, save your time and energy and start your smart investing now and reap the rewards for 1 year or 5 years if you wish to compound your interest.
ABFNW are here to help you grow your wealth and create the lifestyle you and your family deserve.