Political instability in the global arena makes securing your finances for the future a more difficult effort than it has ever been. At present, many countries are experiencing unstable geopolitical turmoil, and many face internal and external military upheaval. As outside influences continue to vie for control of natural resources, many world and national banks secure physical metals as a hedge against this kind of turmoil. Historically gold and silver have held their value above bonds, stocks, and real estate during times of unrest, and precious metals are a semi-liquid hedge against the fluctuating values placed on other investment vehicles.

Gold Stands The Test of Time

The truth is that while corporate stocks can deliver very robust rewards in the short-term, there is never a guarantee that their value will last. That is not true for gold and silver. A gold watch owned by George Washington is still valuable. It has intrinsic value. In the same way, investors look to gold and silver as physical commodities to help balance their portfolios.


Reduce Counter-Party Risk

The experts at Guildhall Wealth Management in Toronto admit that stocks and bonds are great investments, delivering high returns; but both involve “counter-party risk” that can be avoided through diversification. If you own the municipal bond of a small town and it suffers a horrible tornado, your financial investment will suffer through no fault of your own. Visit Guildhallwealth.com to learn more about how investing in precious metals or gems helps you remove this third-party liability — after all the gold bullion in your safe can never be taken away and it always retains its value.

Precious Metals Are A Solid Inflation Hedge

Why do most government agencies provide “cost of living adjustments” (COLAs) based on inflation? It is because they know that the “earning power” of your money is reduced due to inflation every year. Even today, you can probably look at your budget and see inflation’s effect. What is the size of your box of cereal? Isn’t it smaller, but the price is the same or higher? That is inflation.

Gold and silver are commodities. They are raw materials, used in jewelry, dentistry, cosmetics and industry. The World Council of Gold reported that 493 tonnes of gold were used for jewelry in the 3rd Quarter of 2016. From its use as de facto currency for thousands of years, and because of its high demand in industry, gold and silver will always be in demand. When inflation increases, the value of gold and silver increases along with it. This is why precious metals are the perfect inflation hedge — as markets struggle, and stock prices drop, gold often acts on an inverse curve and gains value.

The right wealth management company can help you develop a safe investment strategy, with the right mix of precious metals like gold and silver to help you mitigate counter-party liability risk and hedge against inflation, guaranteeing you a healthy return on your investment.