The Effect of a Stock Market Collapse: Protect yourself with Investment in Precious Metals


When the stock market crashes, the value of paper money goes down. That’s because people are losing faith in the government and the economy. They’re looking for something that will hold its value, and precious metals fit that bill. Gold, silver, and platinum have been used as currency for thousands of years. They’re valuable because they’re rare and have a lot of practical uses. That’s why they’re often called “hard assets.”

The Historical Lesson

No matter how long the crash lasts, history demonstrates that gold prices almost always rise. Gold prices once more increased the most during one of the worst in the previous 50 years! Amazingly, gold’s value increased by 12.4% even during the worst crash, which occurred between March 27, 2000, and October 9, 2002.

Gold’s value rose by 2300% between the 1970s and the 1980s.

Biggest Crashes

The Standard and Poor’s 500 (Approx %) -ve

Gold (Approx %) +ve

2002 49% 12
2009 50% 20
2011 19% 9

It is simple to see how investments like cash, money market funds, and precious metals have performed over the past 60 years or so.

Why buy precious metals?

You can buy precious metals like gold, silver, and platinum for a few reasons.

  •   Precious Metals Are a Safe-Haven Asset
  •   Precious Metals Are a hedge Against Inflation
  •   Precious Metals Have Low Correlation with Other Assets
  •   You Can Easily Buy and Sell Precious Metals
  •   Precious Metals Offer Diversification

Buying gold

Gold is a popular investment option because of its long history as a store of value and because it’s rarer than most other metals. Gold We’ll begin with the first of all time. Due to its strength (it doesn’t rust or corrode), malleability, and capacity to conduct both heat and electricity, gold is unlike other metals. Although it has some commercial uses in dentistry and electronics, we are most familiar with it as the foundation for jewellery and as a form of money. The market decides its worth every hour of every day, every day of the week. That’s why it’s considered a good investment.

Buying silver

Silver is rarer than gold, but it’s not as valuable as gold. Like gold, you can buy silver bullion, silver coins, and silver bars. Unlike gold, the price of silver fluctuates depending on whether it is seen as a store of value or an industrial metal.

There has been an explosive increase in demand for electrical appliances, medical devices, and other industrial goods that require inputs of silver due to the growth of a sizable middle class in the emerging market economies of the East. Silver was in demand because of its properties, which made it useful for electrical connections and bearings.

Buy Platinum

Platinum is a rare and expensive metal that is used in industrial applications. The geopolitical environment in the nations where mining is done, as well as the law of supply and demand, have a significant impact on platinum prices. In this regard, statistics on auto sales and production have played a significant role in determining prices.

Buy Palladium

Palladium is a rare and precious metal just like gold, silver, and platinum. It has a silvery grey color, but it’s less valuable than other precious metals. Palladium, which has more industrial applications than the three metals mentioned above, is less well-known. Palladium is a metallic alloy that is shiny and silvery and is used in many different manufacturing processes, especially for electronics and commercial goods. Additionally, it has applications in jewellery, dentistry, medicine, chemistry, and groundwater treatment.

How to spot a good investment and avoid scams

It’s important to remember that precious metals are a high-risk investment. That means it’s important to do your research and understand the risks before you invest. Here are a few things you can do to protect your investment:

 – Invest only in gold, silver, or platinum coins and bars. These are the only forms of precious metals that are backed by the government.

 – Stay away from silver coins that have been minted in the past 10 years.

-Most seasoned investors favour holding a mix of precious metals, such as gold, silver, palladium, and platinum.

-Some advice for you to sell some of your bullion and coins during a financial crisis to pay off any debts you may have.

To Sum Up

A useful and effective way to diversify a portfolio is through precious metals. Prior to getting started, it’s important to understand your objectives and risk tolerance. It is possible to use precious metals’ volatility to build wealth. If you are looking to invest in precious metals online, then Au bullion is here to provide you with the solution you are looking for! 

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