Precious metals offer a unique protection against inflation. They have intrinsic value. They bear no credit risk and they cannot be inflated. This means that you can no longer print them. They also offer real “upheaval insurance” against financial or politico-military upheavals.
From the perspective of investment theory, precious metals also have a low or negative correlation to other asset classes such as stocks and bonds.
Precious metal risks
Every investment has its own risks. Although they can come with a certain level of security, investing in precious metals always involves a certain degree of risk. Metal prices can fall due to technical imbalance. However, sellers benefit in times of economic uncertainty as prices tend to skyrocket.
