Why are individual investors buying gold and silver more now than in the past?

Large institutions, individual nations, and central banks have made gold an integral part of their portfolios for decades, but household investors have historically been less willing to trade in their stocks and savings accounts for an investment that does not pay yearly dividends or interest. Many investors viewed mainstream investments such as stocks, bonds and real estate as “more reliable” than physical possession gold and silver. They believed that precious metals were risky investments because of gold’s history as a confiscatable item by the US government.

Between the 1980s and 2001 gold laid flat and some market analysts thought that spot prices would fall even more. However, the government’s manipulation of interest rates combined with the expanding US debt has propelled gold into previously unknown territory. Not to be out done, last year silver reached a 31-year high. Investor demand for these two metals could continue to rise due to the continuously falling dollar, flat stock markets and a real estate market that is struggling to pick up steam despite numerous government programs aimed at assisting existing homeowners and new home buyers.

Many investors who previously avoided buying gold and silver now devote a large portion of their portfolios to precious metals. One does not make any money with gold until it is sold, but today’s investors seem to be more concerned with preserving their existing wealth rather than reaping short-term cash pay outs. Some investors favor gold and silver ETFs or mining stocks but at the end of the day these are merely paper investments, not hard assets. If an investor is concerned about a national financial catastrophe then physical possession of precious metals are the way to go; ETFs cannot be cashed out for real metals, and the success of mining stocks is tied to the company’s executives and not spot prices.

GoldSilver.org gets more business than ever before from client referrals. People who would have never considered a gold investment a decade ago have seen how well their friends and colleagues have done and they want to shore up their own portfolios. Investors buying gold and silver are encouraged to request a free copy of our company magazine, Real Money Magazine, for yourself and others by clicking below or sharing this page on Facebook and Twitter.

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