5 Ways Silver Can Help Your Investment Portfolio Grow
If you are looking to provide some extra diversification and growth opportunity to your investment portfolio, then you will want to consider silver.
Over the past year, the demand for silver skyrocketed, and the price of silver increased significantly. The executives at Allegiance Gold can show you how silver can help your portfolio. Here’s a look at why you should consider adding this precious metal to your portfolio today.
1). Inflation Hedge
Inflation is one of the biggest thefts of monetary wealth in the world. As inflation begins to rise in 2021, you may want to consider adding silver to your portfolio. So why is silver such a great inflation hedge? Silver can not be printed into existence like fiat currency. There is also a limited amount of silver on the planet which makes it a desirable commodity for investors. Therefore, silver benefits during times of inflation. In fact, silver tends to be one of the top-performing assets during inflationary periods.
2). Diversification Away From Stocks
If you look at most people’s investment portfolios, you will usually find a high concentration of stocks. This may seem like a good idea during a bull market. However, during a bear market in equities, a stock-heavy portfolio can experience some massive drawdowns. Silver, on the other hand, tends to rise during bear markets in stocks. Therefore, owning silver is a great way to diversify your portfolio and smooth out your returns.
3). Insurance Against Market Crashes
About once a decade, the stock market will crash and cause a great amount of loss in a short period of time. For instance, the stock market has experienced crashes in the years 1987, 1999, 2008, and 2020. Odds are that there will be another crash before the 2020’s decade ends. During the uncertain and panic times of a stock market crash, investors will flee into the safe haven of gold and silver. Therefore, silver provides some excellent insurance during stock market crashes to help offset any losses from stocks.
4). Allows You To Participate In Industrial Growth
Unlike gold, silver experiences some large demand from the industrial and manufacturing sectors. You can find silver in most computing and electronic devices. Therefore, silver makes a great investment idea during times of high production in the tech and industrial sectors.
5). Preserves Purchasing Power
Did you know that the U.S. dollar has lost 98% of its purchasing power since 1913? To ensure that your wealth preserves its purchasing power, you will want to consider an investment in precious metals such as silver. With some silver in your portfolio, you can protect your wealth during the continued devaluation of fiat currency.
Keeping Your Portfolio In Top Shape With Silver
Silver is one of the smartest investments that you can make when it comes to protecting your wealth and diversifying your portfolio. Consider an allocation of silver into your portfolio today through the purchase of physical silver coins and bullion through Allegiance Gold. Allegiance Gold has been helping educate the importance of diversifying a portfolio in a world like we live in today. Contact the executives at Allegiance Gold, and ask us about our FREE Gold IRA Guide today!