There are several factors to consider before purchasing precious metals. After reading about why a purchase of precious metals might help their asset portfolio, buyers usually follow up with questions about what and where to buy. As of the last week of July, gold hit a record consecutive two-day high during trading. After it traded at around $2,000 per ounce in Asia, gold could reach $3,500 per ounce in the next two years, report some experts. These historical highs and anticipated climbs indicate that it is an excellent time to turn to gold as your next safe-haven asset.
Prospective buyers often begin to look into gold without considering whether they have any precious metals in their possession already. Before considering a gold purchase, it may be worthwhile to think about any gold that you already own. Gold exists in computer memory chips; electronic components for cell phones; dental fillings, crowns, and bridges; surgical instruments; medical treatments; satellites; specialized glass; athletic medals; and coins. If you currently possess gold that you are willing to trade, your start-up costs might not set you back.
If you are still unsure about whether it is an excellent time to turn to gold, consider the gold-to-silver ratio. The gold-to-silver ratio is the oldest continuously tracked exchange rate in recorded history. This ratio measures how many ounces of silver it takes to buy an ounce of gold. Interested buyers refer to the gold-to-silver ratio when deliberating the pros and cons of purchasing precious metals. When the gold-to-silver ratio is high, prospective purchasers might consider buying silver. Should the ratio be lower, gold is the wiser option. Although this ratio is a reliable tool for purchasing precious metals, it is not foolproof. It is best to use this ratio as one of many data points when deciding whether to purchase precious metals.
Gold’s Significance in 2020
The COVID-19 pandemic resulted in a nationwide quarantine that left American markets at a standstill. While some businesses transitioned to work-from-home settings, many industries had no way to operate under typical conditions. Social distancing and remote work led to the highest unemployment rate and the most massive economic recession since 2008. This “new normal” has forced many Americans to seek new avenues of income, especially since COVID-19 does not seem to have an end in sight.
During periods of economic turmoil, economists preach the importance of safe-haven assets. Safe-haven assets help portfolio owners protect themselves—and sometimes even profit—while the markets struggle. Among these safe-haven assets are precious metals, such as silver and gold. In late April 2020, the price of gold was around $1,700 an ounce, marking a 544-percent price increase since 2000. On July 28, gold hit a record high. In Asia, spot gold traded for slightly less than $2,000 per ounce. The coronavirus is not going anywhere anytime soon, nor is the American economy expected to make a turnaround amid mounting tensions between the U.S. and China. As experts begin to report a prospective climb in gold prices, deciding to purchase gold as soon as possible could position you toward a wide profit margin.
Turning to gold as a safe-haven asset can help diversify your portfolio. Experts predict that the price of gold could reach an all-time high of $3,500 in the next two years. Although gold could potentially consolidate to a lower cost of around $2,000 per ounce, that price still indicates a reason to consider precious metals. Portfolio diversity is always an essential component of asset holding, but it is especially vital when considering alternative portfolio models during this time. If you are looking into which safe-haven asset is best for you, it is most definitely worth considering gold.
About U.S. Money Reserve
U.S. Money Reserve opened its doors in 2001. Nineteen years later, the company is one of the largest distributors of U.S. and foreign government-issued gold, silver, and platinum legal-tender coins. Hundreds of thousands of clients rely on U.S. Money Reserve to diversify their assets with physical precious metals. The company holds a top-tier reputation as an industry leader for those in pursuit of safe-haven assets. Prospective customers can expect excellent customer service that paves the way for long-term relationships.
U.S. Money Reserve, also known as America’s Gold Authority®, is headquartered in Austin, Texas. The company is led by Phillip N. Diehl, who also served as the 35th director of the U.S. Mint. U.S. Money Reserve’s team employs coin research and financial professionals who seek out the highest-quality products for precious metals buyers. If you are looking for the highest level of customer service and expertise available during your upcoming purchase of precious metals, then it is imperative that you work with none other than U.S. Money Reserve.