In many ways gold can act as your safety net. There is an old wall street saying, “Put 10% of your net worth into gold and hope it doesn’t go up”. As when gold flies, it often means things are going wrong elsewhere.
If you consider the recent economic climate, even our hard earned cash held in reputable banking establishments can no longer be assumed as safe.
This is why trading physical metals come into their own as a healthy alternative in safe guarding your net worth.
Unlike paper assets, Physical metals keeps its value, with its purchasing power preserving over time.
Gold in particular, many believe should form a part of a properly diversified portfolio. Gold remains a universal finite currency, held by every central bank in the world.
In some ways, gold should be seen not as an investment per se, but rather as a form of insurance.
Below are just two of the reasons why trading physical metals are a better option than trading the spot or ETF markets.
1: Transparency: Compared with the stock market, the physical market is much more transparent and a lot more difficult to be manipulated. Prices in the physical markets do not fluctuate as much as the stock market, so you have more control.
2: You are holding assets with real intrinsic value. Unlike the share price of your favourite stock or company, the value of the physical commodity you hold is unambiguous. There is no outstanding debt in the physical market, so everything has a clear market value.