So, you’ve made the plunge. You took that extra cash on hand, and instead of planning a third trip to Cabo this year, you used it to further support your portfolio. Good for you.
But this is the first time you’ve done this, and you’re feeling pulled in different directions. Should you buy more? Should you cash out? Why are you here in the first place?
Now that you’ve made investing in gold and silver part of your immediate plan for your long-term financial future, some things to remember about what to do moving forward.
Why Am I Here, Again?
Remember, the reason you got into gold, silver, platinum or palladium is that you needed a portfolio hedge.
That is, you needed something to provide for you and your family financial support during (1) short-term market volatility or (2) the long-term, period.
That means, you probably shouldn’t be considering getting out now. You’re in this for the long haul, as you should be. This isn’t imprisonment, it’s commitment.
In order to make the most of your investment here, you have to remember that.
How Will Investing in Gold and Silver Work For Me?
In two periods, specifically, and for two reasons.
The first is the simplest: the long-term.
Over time, with gold, silver, platinum and palladium being such safe bets, they’re likely to gain almost organically, without any fiddling or tinkering or tampering from you.
They’re also likely to earn for you in the short-term, while the rest of the market slogs along through the inevitable ebbs and flows of common stock and bond trading.
Now, there may be a point at which, for you, it’s the right time to liquidate. Maybe you’ve got an upcoming vacation, and need a little extra cash. Maybe you’re on the doorstep of your retirement and, frankly, want all of it – and want all of it now.
Assuming your financial future isn’t limited to the next 2 or 3 years, there are plenty of reasons for you to keep a substantial amount of your holdings right where they are.
Of course, as is often the case with life, if something that is too good to resist comes up, it may be worth your while to consider exploring that opportunity to cash in.
However, as a general rule of thumb, we encourage that you approach this with a long view.
That’s the best way for you to make your money work for you.
How will investing in gold and silver work for you?
First, because gold, silver, platinum, palladium and other precious metals you may be investing in tend to react to market stimuli differently than do most stocks and bonds.
So, if the rest of your portfolio begins to sour, your commodities will cushion the blow.
That’s not to say that when stocks soar your commodities holdings will tank. Just that gold, silver, platinum and palladium react uniquely relative to the rest of the market.
That brings us to Item No. 2 within investing in gold and silver.
Since most investors know this little wrinkle about investing in gold and silver, they’ll often do it precisely at the time the rest of their portfolios begin to show a little dip.
That, you should remember from first-year economics, is called a demand spike. And what it results in is a price hike, which, for you, the investor, means better net gains.
There are a number of different ways for you to approach this, and the only one who can pick the right path for you is, well, you.
But that’s not to say that there isn’t an established playbook of sorts to help.
As for that script, it tells you to hang onto your gold and silver stores for a while.