For a long time, gold and silver have been in high demand, considered a store of value by collectors and investors for thousands of years, prized for their radiant, metallic luster and rarity. Fast-forward those thousands of years and these precious metals are still the benchmark commodities, true, the physical currency whose value remains stable. It’s precisely because of its stability, and gold’s ability to go up when the global markets dip, remaining level when the global markets go up, that makes them such a stellar candidate for your RRSP.
Buying Precious Metals
In order to invest gold or silver in your RRSP, you have to look for a reputable company that deals gold, preferably a company with which you can make the purchase in person, online, or over the phone – each have their perks. In person, you get to sit down with a representative who will answer any questions you may have, and you get to physically see the metal you’re buying, but in order to invest gold in your RRSP in person, you’ll probably have to schedule a meeting beforehand to ensure availability. When a purchase is made over the phone, confirmation of the pricing will be handled, the client will receive the order confirmation, payment is made, and then delivery is arranged. Online purchase is even simpler, as all the client has to do is find an accredited, secure e-store like guildhallwealth.com and select which precious metals they’re interested in, arranging for either shipment or storage as they purchase.
We’ll start with gold – investing gold in your RRSP is a solid move because gold has a negative correlation against traditional portfolio and is often used as a hedge by investors against currency devaluation. A recent example of this was in 2008 when the value of stocks and bonds deteriorated, and all the while gold gained an average of thirty-two percent, helping to carry returns through the downturn. Holding gold in your RRSP ensures security in the global markets as it’s not affected by the economy.
Silver, on the other hand, is considered undervalued by many experts despite its many industrial usages, which include medical, electrical, and solar, and its use in jewelry. Nevertheless, investors are turning to silver as a means of wealth protection, as it’s more affordable than gold and diamonds, and, alongside the latter, makes for a more diversified – and therefore more secure – RRSP.
Inflation and Geo–Political Conflict
As a final note, it’s worth mentioning what has touched on briefly above, namely that during times of inflation, gold and silver are great hedges because their values either remain the same or increase. Investing gold in your RRSP is the right move because even when inflation or geopolitical instability is affecting the markets (and geopolitical instability has always affected the markets) your investment remains intact.
Holding gold in your RRSP will give you a peace of mind during inflation and instability, providing a hedge against a hectic market. You need only contact a trustworthy gold dealer to get the ball rolling, and in no time you’ll be protecting your wealth the old-fashioned way.