The Role of Precious Metals in Your Phoenix Financial Plan
Financial planning is critical to your future. Without good financial planning, you could find yourself unprepared in a crisis, such as a major accident or illness. Good planning can also help you pay for essential things, like the education of your children or your retirement.
Working with a Phoenix financial advisor can help you come up with a plan that is tailored to your current financial circumstances and your future goals. While you might expect to hear a lot about mutual funds and bonds — and you will — you may be surprised to hear your advisor suggest that you also include commodities like precious metals in your portfolio. Whether you are looking at jewelry, coins, bullion or bars, precious metals can help you grow wealth over time.
Whether you live in Arizona or in another country, here’s how precious metals can play a role in your financial plan:
Provide Steady Growth
Precious metals like gold, silver and platinum maintain their value over time. If you look at trends for the price of precious metals over the past, you’ll see that the price has increased on average over the years. While there may be a drop in price occasionally, the overall trend is upward.
That steady growth can help you build your wealth over time and provide protection against loss. You can build an entire portfolio out of precious metals, or you can incorporate precious metals into your overall investing strategy to provide some stability.
Act as a Fallback in a Crisis
Even in times of financial crisis, precious metals have maintained their value. During The Great Depression, money became nearly worthless. However, gold and other commodities had value.
We hope to never go through a financial crisis like The Great Depression again, but no one knows what the future will hold. War and economic collapse can devalue your investments. However, precious metals will continue to have value even in these extreme situations.
One reason that the value of precious metals remains fairly constant is that demand is steady. Gold, silver and other precious metals are used in jewelry, coins, decor items and other personal possessions. They are also used in manufacturing, such as in electronics, computers and more.
As technology advances, this demand is expected to only increase. By adding precious metals to your portfolio, you can almost guarantee that your wealth will grow.
Investing can be hard for some people to understand because it can almost seem like monopoly money. It seems like you are trading in concepts. Even though actual money is involved, no dollars are changing hands. It all takes place electronically.
Precious metals are a tangible commodity. You can look at them and see their worth. You can trade them with others in the form of coins or bullion. You can even collect them as a hobby (albeit one that has a lot of value).
Precious metals should be a part of your financial planning, whether you are trying to save for retirement or you are trying to grow your wealth. Sterling Investment Advisor in Arizona can help you create an investment strategy that incorporates gold and other precious metals. Call us today to talk to a financial advisor at our North Phoenix Coin Shop, about your investing goals.
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