Our Top 7 reasons for buying gold and silver.
At the start of 2020, Coronavirus lockdowns and restrictions resulted in many new private individuals visiting our site.
These joined an established community of gold and silver investors who regularly add to their portfolios, providing them with a growing pot for longer-term security. Whilst we were working flat out to meet demand, a furloughed population of new and existing customers had time to educate themselves and came to the conclusion that confirmed a need for precious metals.
As we entered 2021 the situation appeared to worsen and governments around the world imposed a range of draconian restrictions and sanctions on their citizens. Now in 2022, many of us are still not at liberty to travel and work in ways we had taken for granted. The ownership of small denominations of gold and silver is now seen as a must for many.
This year I have spoken to and supported a wide range of both new and seasoned investors on their journeys. I find it so interesting to learn what drives individual decisions to buy and hold physical gold and silver, bars and coins.
I would like to tell you that the top reasons are purely investment management decisions, but these days this is not the case. There are many more factors at play and our customers are not simply looking for good investments returns, they are looking for safety, control and a dealer they can talk to and trust.
1. Tangible Assets
Having a tangible asset, such as Gold and Silver, you can hold and trade easily in bar or coin formats has become highly desirable. A store of wealth that is internationally recognised and can be easily traded has become a must.
2. Protection
Protection against digital threats by nefarious governments wishing to control and manage movements, health, work and purchasing freedoms for its population. Tradable gold and silver coins and bars can be easier to exchange offline than stocks, shares, bonds, fiat currencies and possibly crypto.
3. Price manipulation
It is widely believed that gold and particularly silver prices have been suppressed by institutions and governments because they are building up their own reserves. This means that we can also buy at rates well below where they perhaps should be, given all the additional QE (Quantitative Easing) and artificial money creation of recent years. Even though we have seen prices rise since 2020, price suppression and corrections make current levels very attractive.
4. High Property Prices
Lockdowns have led people to re-evaluate where they live and how they work. Several of our clients have sold properties in towns and cities and can’t find another one in the right location at the right price, so have parked their money in Capital Gain Tax exempt gold and silver coins.
Whilst we would never advocate precious metals as a short term investment, many are happier with their money out of low interest bearing bank accounts, where it may fall prey to ‘Bail In’1 policies, allowing banks in trouble to access investors’ funds to bail them out. We would never advise, as anything can go up or down, but it is not uncommon for gold to do significantly better than property even in the short term.
5. Tax Free Gold and Silver Buying
Bleyer now has access to a customs warehouse arrangement, so we are able to reduce or eliminate your exposure to VAT on taxable metals, making them a more cost-effective option. This proved to be very popular with customers in 2021.
6. General Portfolio Diversification
All markets carry some risk, whether considering stocks, property, cryptocurrencies or commodities, it can be tricky to get the timing right. Knowing when to stay in or get out of one market and into something else is not always easy. Through diversification, it is possible to hedge against underperformance and other threats by owning a range of assets. For example, in most cases, Gold tends to have a negative correlation to stocks during market crashes.
Diversification is probably one of the most common and less risky reasons to enter the precious metal market. Precious metals require no specialist knowledge – The history and price of these can easily be found and tracked via charts and tables.
7. Collectors
This article would not be complete without mentioning the wide range of silver and gold bullion coins on sale, sourced from mints around the world. These make timeless gifts that retain value into the future bringing pleasure to collectors and recipients alike. We are always on the lookout for something new and have added the attractively priced Bullmint, Tokelau silver coins to our collection. New 2022 editions are arriving with us every week.
Buying Gold and Silver with Bleyer
Bleyer offers expert consultancy and welcomes appointments with customers looking for a personal service either face to face, by phone or online. Give our expert team a call on 01769 618618 or email sales@bleyer.co.uk.
You can also browse our online shop to view our wide range of products and access other articles in the news section of our website.
