In today’s uncertain and volatile market, increasing inflation, and uncertain global economy, smart investors continuously seek methods for preserving and enhancing their wealth. One investment vehicle that stands the test of times is the precious metals bullion—i.e., gold, silver, and platinum. While stocks, real estate, and bonds get the most attention, bullion quietly holds its strength in creating a diversified and sound portfolio.
At AU Bullion, we believe that all investors, new and old alike, should know how physical bullion fits into the grand scheme of building wealth. Here’s how it breaks down.
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Bullion as an Inflation Hedge
One of the strongest arguments investors use in favor of bullion is that it maintains purchasing power in the long term. As paper currencies depreciate in value through the process of inflation, gold and other precious metals maintain their value and, in many cases, increase in value when inflation increases.
Both in Canada and all over the world, as inflation affects household budgets and saving accounts, investors worldwide are transferring some of their funds into gold and silver in order to secure their future finances.
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Reducing the portfolio volatility
Bullion has low correlation with stocks and bonds, making it an effective tool for diversification. When stocks fall, precious metals tend to remain firm or gain value. It works in smoothing the highs and lows in your total portfolio, and in times of economic downturn, as well as during geopolitical events.
Including physical bullion in your investment portfolio can serve as an uncertainty shock absorber.
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Tangible, physical wealth
Unlike stocks or digital assets, bullion is physical wealth that you can touch. You need no third-party institution to authenticate the value and availability in the case of gold and silver coins or bars. It provides investors with an extra level of control and assurance, above all in the case of market interruption or systemic risk.
At AU Bullion, we provide an extensive selection of physical bullion offerings—such as Royal Canadian Mint Gold Maples, Silver Bars, and Platinum Coins—in order to facilitate taking ownership of your wealth directly.
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Portfolio Balance Between Asset Classes
A diversified portfolio consists of an array of asset types for risk distribution and maximizing returns in the long term. Precious metals may complement real estate, stocks, fixed income, and even cryptocurrency through the provision of a historically stable, non-correlated element.
Experts in finance usually suggest investing 5% to 15% in precious metals in your portfolio, based on your tolerance for risk and outlook on the market.
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International Liquidity and Value Recognition
Bullion is universally recognized and liquid. Regardless if you own gold in Canada, the U.S., or elsewhere, it can be easily converted into local currency. Due to its worldwide acceptability, it is the best asset for investors looking for portability and liquidity, most importantly, in unpredictable global environments.
Invest and divest with confidence through AU Bullion’s live prices, trusted reputation, and buyback program.
Create a Resilient Portfolio with AU Bullion
Adding bullion to your portfolio is not only an act in finance—it’s an action based on centuries of preserving wealth. It may be for those new investors getting their start, or those who want to balance their mix of assets, AU Bullion has something for every type of investor: gold, silver, and platinum products for all. Come visit us in Brampton or Vancouver. Shop 24/7 online with real-time prices. Speak with our team for customized advice. Your portfolio should be strengthened, stabilized, and strategically diversified. AU Bullion can assist you in doing that.