Why Invest In Gold And Silver



Hibiscus Bullion Limited

As investors are turning to safe-haven assets amongst the uncertainty of Covid-19, gold is reaching new all-time highs having had the most incredible year. Back in November 2020, prices did fall considerably as a result of market optimism which was primarily driven by the news of a vaccine. The question is though, was this simply a bump in the golden paved road or, the beginning of a precious metal bull market?

In my opinion, evidence would suggest that the recent fall could be attributed to ‘asset rotation’ brought about by investors taking higher risks and equity markets recording record highs – however, as we move into 2021 is this still the case for gold?

Over the last couple of decades, gold has surfaced as being the greatest performing of the mainstream asset classes.

Gold is often considered to be a wealth preservation tool, a tangible asset which is free from counterparty risk as well as a return enhancer for portfolio expansion. That said, when looking ahead to succession planning or when setting up savings schemes, this is one commodity that is often overlooked.

An air of mysteriousness has always surrounded gold, even more so when selling or buying it. Hibiscus Bullion Limited aims to lift some of the mystique from this precious metal.

Why gold investment?

Understanding why people purchase gold is key to knowing if it is a good investment. In the turbulent economic times that we are living in, gold purchase above all others, is by far the most sensible option. Non-confidence in banking systems combined with an all-time economy low could well catapult gold bullion into the forefront of everyone’s investment portfolio. People have been asking the age-old question of ‘where is money really safe?’ and today more people are replying with the oldest answer which is ‘gold’.

What about silver?

The question is however, should you buy gold or silver? Well, savvy investors own both. Gold can offer protection and insurance amongst uncertain economic times, whereas silver is a much more speculative investment. Although both silver and gold are commonly invested-in precious metals, silver is completely different investment which can reap substantial profit and it is because of these differences, that owning both precious metals together can be of benefit.