In a world of turbulent times with market uncertainty and economic fluctuations, investors are growing more aware of bullion as a safeguard for their investment portfolio. When we talk about bullion we primarily refer to Gold, Silver and Platinum. These precious metals have been seen as a symbol of wealth and a method of trade for centuries. It is a tried and tested method of investing and that really help you to diversify your investment portfolio.

The Role of Bullion in Modern Investing 

Bullion and Inflation

One of the biggest strengths that bullion has, particularly Gold, is its ability to hold its value during times of economic crisis and inflation. We saw this happen a few years ago during the pandemic when the purchasing power of the dollar went down, resulting in Gold prices skyrocketing. Investors who had purchased Gold prior to the pandemic heavily reaped the benefits. 

Economic Uncertainty

During recessionary periods or during times of volatile markets, we normally see investors swarm to Gold as a ‘safe haven’. This is because Gold has always been known to be an asset that will hold its value and be a good place to store your wealth. Going back to the pandemic example, that was a direct moment in time where the world’s economic markets turned upside down but Gold stayed strong. 

How to Incorporate Bullion into your Portfolio 

Diversification

The very first step in using bullion as a hedge is by diversifying your entire investment portfolio. It is recommended to hold a certain percentage of your investment portfolio in Gold. Now how much of the portfolio is up to you and your investment goals, it is always recommended to do your own research and discuss with a financial advisor when making these decisions. 

Physical vs. Paper Gold 

When investing in Gold you have a variety of options, the most common is to buy Physical Gold Bullion, however some investors choose to purchase Paper Gold in the form of ETFs, mutual funds, or even Gold mining stocks. It is important to know the risks and benefits of both before investing. 

Long Term Strategy 

When you are investing in bullion you should view it as a long term investment. It is not a get rich quick investment, it is an asset that will make you wealthy over time.