Testing Fake Bullions with the Sigma Pro

Why Invest in Gold and Silver?

Physical gold and silver, such as trendy jewelry, investment grade bars, privately minted rounds, numismatic coins, or even raw ingots, never degrade in value being one of the world’s oldest asset classes.

Whether you are a newbie investor aspiring to protect your hard-earned wealth or an experienced investor wanting to diversify your portfolio, investment in physical gold and silver is a smart move in this day and age.

For the past 15 years, physical demand on bullions never ceased its inertial momentum as it is constantly influenced by a number of factors:

  • Economic volatility and inflation
  • Currency hedging
  • Portfolio diversification
  • Capital growth returns
  • Low interest rates

Most people turn to health and life insurance to safeguard their assets. Similarly, gold is an excellent form of “investment portfolio insurance” because of its reputation as a hedge against economic volatility, uncertainty and risk of inflation.

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GOLD as an Asset

Historically, gold tends to perform well whenever there are recessions, rising geopolitical tensions, economic slowdowns and financial market volatility such as the speculated financial market gloom. Gold also does well during periods of high inflation historically returning close to 15% per annum in these environments.

All of these facts lead prudent investors to turn to precious metals specifically on gold. With so many economic risks on the horizon, including escalating global debt levels, it is understandable why gold continues to be an excellent hedge against all of these.

 

CAPITAL GROWTH RETURNS

PERCENTAGE RETURNS (%)

Returns to end-2016

2016

10yr

15yr

Physical Gold

25.0%

10.1%

8.3%

Stock Market

5.3%

7.4%

8.0%

Bond Market

9.8%

6.5%

6.8%

Cash

.75%

4.8%

5.0%

Source: One Ounce Financial Markets Research
* Please note that these are subject to risks such as adverse or anticipated, market, and financial or political developments, among others

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SILVER as an Industrial Metal

Silver has an intrinsic value due to its metallic characteristics and because of its finite supply.

Silver is widely used for industrial purposes for its electrical conductivity, thermal resistance and reflective qualities which are highly sought after by the industrial sector.

Everyday electronic gadgets like mobile phones, cameras, laptops, monitors or specialized medical equipment such as x-ray machines all contain physical silver. No wonder the physical demand on silver continues to rise which adds another element to the silver account- compelling people to accumulate this precious metal even more.

Silver has also been considered an asset with stored value throughout most of recorded history. With demand outstripping supply and with silver mining output set to shrink in the next years, the silver market looks fundamentally strong.