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Gold Expert
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Daily / Weekly Gold commentary
When people think about investing in precious metals, it often conjures up images of giant vaults, luxury portfolios, or investors with deep pockets and international bank accounts. It can feel exclusive, like something meant only for the ultra-wealthy. But in reality, gold and silver investing is far more accessible and practical than most realize. No velvet gloves or offshore accounts required.
Unfortunately, common myths and misconceptions can keep everyday investors on the sidelines, unsure, hesitant, or misinformed. That’s why we’re here to set the record straight. In this blog, we’ll debunk the top five myths surrounding precious metals investing and show you how easy, secure, and smart it can be to start building wealth with gold, platinum and silver today.
Myth #1: “Gold Investment Is Only for the Wealthy”
To be crystal clear, you don't need to be a millionaire to invest in gold. This outdated myth is fueled by Hollywood vault scenes, not actual investing. Precious metals are more accessible now than ever before, and there's no need for a high budget to get started.
Gold and silver come in a variety of sizes and weights; a bar can be of 1 gram, a full ounce, or a small fractional option like 1/10 ounce or 1/4 ounce coins. Which means you can be an investor and start with a small amount to build on over time.
If you are just getting started, consider investing in silver rounds and smaller bars as an excellent entry point. They're affordable and sit easily in a pocket or safe, and importantly for wealth protection, they're all equal in value.
You can begin investing by purchasing authentic and certified precious metal from Pacific Precious metals. We have various outlets across California including Palo Alto and Sausalito. Drop by or visit our website to learn more.
Myth #2: “Gold Is Obsolete in the Digital Era”
With hype surrounding crypto and NFTs outpacing Teslas, some conjecture that gold investment is a thing of the past. This is absolutely not true. For thousands of years, gold has been an asset through numerous collapses, crashes, displacements, and chaos.
Gold and silver are different from digital assets. They provide real physical assets versus bits, zero counterparty risk versus a counterparty, and a proven track record of stability versus volatility. There are no passwords, no platforms, no bits to figure out. Its value and no further explanation are necessary.
Crypto markets go up and down with memes and tweets. Gold has proven to be a very stable store of wealth, a constant relative to crypto. It’s not thrilling, but rather steady. Carried through a world digital, gold still plays the ultimate “offline” investment; traditional, timeless, and stable.
Myth #3: “Gold Doesn’t Generate Income, So It’s Useless”
This is a classic example. Critics often love to say, "Gold just sits there - it pays no dividends, so what's the point?" Let's flip that thinking: gold isn't supposed to pay a dividend - it's supposed to protect it. It's a hedge, not a high-yield stock, and that's its value.
Gold shines when nothing else does. Gold has been a great hedge against inflation, recession, and interruption. When your stocks and bonds are running to work, gold is holding steady, protecting your wealth when the markets get moody or upset.
Investing legends Warren Buffett and Ray Dalio both know the value of gold in a portfolio. Dalio puts it bluntly: "If you don't own gold, you don't know history or economics". TLDR? Non-correlated assets like gold can allow your financial house to remain standing when others are crumbling.
Of course, you don't have to choose. Smart investors use gold in combination with income-generating assets: stocks, real estate, and paychecks. That way, you can have the best of both worlds - growth when times are good, and stability when they are not.
Myth #4: “You Need to Store Gold at Home”
While the notion of shoving your gold bars under the mattress or in a secret sock drawer is a bit of a myth in reality, a home safe does exist, but there are much better options for secure storage! Let's face it, gold is very valuable, making it very enticing to burglars.
Many investors choose to store their precious metals professionally with an insured custodian in a third-party depository facility. For most people, these facilities provide exceptional security, insurance, and peace of mind that a home safe cannot provide!
At Pacific Precious Metals, we have vault storage services that are secure and help keep our clients' precious metals protected and insured. Plus, we also offer discreet shipping and privacy policies to make your investment experience hassle-free.
Myth #5: “Silver Isn’t a Good Investment Compared to Gold”
Here's the big misunderstanding: silver is the "poor cousin" to gold and unworthy of your time. But silver has its narrative and sometimes even greater upside potential. Investors will many times follow the silver to gold ratio, which is how many ounces of silver equal 1 ounce of gold. In history, many times, once that ratio gets higher, silver has outperformed gold as markets have shifted.
In addition, silver is now growing in demand from electric vehicles, solar panels, and electronics. Silver's industrial use is always increasing, which supports long-term value.
What's a better approach? Build a diversified basket of precious metals anywhere from 50% gold and 50% silver, or to your risk preferences. By blending, you are leveraging the stability of gold and the growth potential of silver.
Pacific Precious Metals has just about everything silver-related, from rounds to bars, to get you started (or continue) your collection.
How to Begin Your Precious Metals Journey with Confidence
Buying precious metals does not need to feel daunting or like it’s only for pirates and billionaires! We have busted the biggest myths: gold is not just for rich people, gold is not dead, and silver is more than just a second fiddle to gold. With knowledge and a trusted professional, your experience will start confidently and positively rather than with confusion and uncertainty.
So, where do you start? Visit a Pacific Precious Metals location and talk with our professionals with precious metals experience, who will guide you through each step.
Schedule a one-on-one call with one of our advisors to ask questions, clarify your goals, and make sure your portfolio strategy is in alignment. Then you take the first big or small step... start with, say, a silver coin, perhaps a 1 oz gold bar, and then build on that.
Happy investing!
