Why invest in precious metals like gold?
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For years, investing in precious metals has been presented as an almost safe bet for investors looking to diversify their investment portfolio. Although their profitability is not 100% guaranteed since they are affected by market fluctuations, precious metals are an investment strategy to consider, since their behavior has recently pointed to the upside.
The first asset we think about when it comes to protecting our wealth, in a situation where the economy has entered a recession and the central banks are flooding the markets with liquidity, is usually gold.
Most common precious metals: gold and silver
Gold and silver are usually referred to as precious metals because they are the most common both at the investment level and at the application level. During 2020, gold had a positive year that culminated in a rise and in the case of silver, this precious metal stood out considerably.
Although silver did not outperform gold in terms of growth, in terms of revaluation it stood at more than 40%, after stable and sustained growth.
This growth has attracted the attention of a significant number of investors seeking a diversification of their portfolio with a viable option, especially in times of turbulence in the equity markets, since precious metals present less volatility compared to others. assets.
For those new to the investment world, the question probably arises: Why invest in precious metals? There are many answers to this question, but its importance is reflected in the following 3 reasons:
- Precious metals like gold and silver are a form of global money that can be exchanged anywhere in the world. This offers the possibility of liquidity without limitations of countries, currencies, among others.
- Their applications are extensive, which increases the demand for them and increases their value.
- They are safe assets. This term refers to the fact that in times when the market is in uncertain or unstable phases, these assets are capable of maintaining or increasing their value.
The pandemic and precious metals
The times of uncertainty that humanity is experiencing have impacted the financial market, leading investors to seek an active refuge that gives them a higher level of security and tranquility.
It is here that precious metals have stood out as an investment strategy and thanks to this growing interest, BBVA New Gen continues to monitor its performance in the market and become the link between the investor and his investment.
Through accurate information, extensive experience and multiple options, BBVA New Gen is at your disposal and ready to go.
And you, are you ready to diversify your investment portfolio?
Advantages and disadvantages of investing in commodities
Raw materials are objects that we obtain from nature and that serve as inputs in the production of derived products. For example, cotton is the basis for the textile industry, or petroleum for the polymer industry.