Investing in Bullion in Times of Uncertainty
For as long anyone can remember, bullion has been a haven for investors. Its tangibility and ubiquitous value throughout the world allow investors to breathe with confidence in uneasy markets or times of hardship.
Precious metals have been utilized for monetary purposes and exchange of value for thousands of years in almost every civilization. Bullion has financed revolutions, set foundations for new governments, helped refugees flee war-torn and occupied nations, and lifted people out of hardship in economic depressions. When the worst happens, everyone—from the poorest to wealthiest—turns to the universal language of precious metals.
Since the arrival of Covid-19, some investors are seeking liquidity over investments. Still, many are looking to the security of bullion. Though the United States Mint has closed production of bullion in an effort to stop the spread of the virus at their facility—this has brought a shortage of American Silver and Gold eagles—dealers, such as Delaware Valley Rare Coin Company, continue to buy and sell bullion to the public.
But if the markets are volatile, why should an investor still buy?
1. Bullion holds value through the best and worst of economic cycles. Even after governments stopped backing currencies with silver and gold, bullion coins retained a value based on market prices and demand.
2. Bullion is a tangible asset, meaning the buyer can physically hold and store coins or bars in a manner of their choosing. Tangibility also provides an easy method of transfer between accounts and storage methods or for exchange of goods, services, and other bullion.
3. Brokers are unnecessary for the transaction. Anyone can buy bullion without having to go through a third party. Investors often buy from dealers, distributors, or even directly from mints.
4. Bullion is not just for the wealthy investor. Fractional denominations were created to enable the average person to begin their investment in precious metals.
5. Bullion’s worth is not solely based on markets—premiums are often placed on bullion-specific coins, such as the American Silver and Gold Eagle. These premiums are determined by supply and demand in addition to the market prices, leaving the potential to make hefty profits.
6. It’s a smart way to diversify an investment portfolio. As the adage goes, “Don’t put all your eggs in one basket.” Because bullion always retains some sort of value, it is one of the best methods of retaining wealth.
Though uncertainty fills today’s markets, put faith in time-tested assets like silver and gold. Contact Delaware Valley Rare Coin Company for answers and guidance on all questions related to bullion.
Delaware Valley Rare Coin Company
2835 W. Chester Pike, Broomall, PA 19008
(610) 356-3555
