Why Bringing Bullion Investment into Your Portfolio in 2024 Is a Smart Move

You may have seen the headlines about gold prices breaking new records this year, or you may have seen that silver prices have followed suit and demonstrated a high upside this year. Active investors are always looking for new opportunities and new assets that they can include in their portfolios. With bullion prices showing so much strength right now, bullion has been gaining attention from investors looking for their next move.

Why Are Bullion Prices Strong in 2024?

The growth in bullion prices in 2024 is likely related to two factors: inflation and interest rates. Demand for bullion tends to rise when the United States Federal Reserve raises interest rates. While other countries have their own interest rates, and these changes can cause smaller reverberations around the market, Fed rates have a global impact.

The second factor is inflation. Bullion is seen as a very effective hedge against inflation. Inflation is the process of money losing its value compared to goods. Bullion, especially gold, has historically gained value alongside inflation, making it a better alternative for saving wealth than keeping it in cash in a bank account.

Getting Started with Bullion Investments

Investing in bullion is an effective way to protect your savings from inflation, stock market crashes, and economic uncertainty. You can get started right away by buying physical bullion. Here’s what you need to do to get started:

#1 Find a Bullion Dealer

There are a number of businesses that sell gold and silver bars and coins directly to retail investors. A trusted source for bullion investments will be transparent about their pricing and should also help first-time investors learn everything they need to know about premiums, different products, and more.

#2 Find a Storage Solution

You’re also going to want to find a secure way to store physical bullion. You can either opt to store bullion at home or with a third party. If you’re opting for home storage, consider buying a home safe. If you’re going with a third party, look for allocated storage, where your bullion is kept separately from bullion belonging to other investors.

#3 Get Insurance

Finally, make sure your investments are protected from theft, fire, and natural disasters by getting it insured. Home insurance policies may not be enough to insure bullion investments, as they often come with coverage limits for valuables.

How Much Bullion Should You Buy?

You can get started with any amount. Counterbalancing a stock-heavy portfolio with an alternative is never a bad idea, and even if you only have the money to make a small bullion investment, you can think of it as a starting place.

The benefit of investing in bullion is portfolio diversification, which means that you have money in various different assets. One downturn should not impact all of your savings. Putting about 5 to 10 percent of your total portfolio into bullion will help you diversify your investments without becoming over-exposed to the asset.

Bullion is a useful tool for investors adding something to their portfolio outside of the typical mix of stocks and bonds. Used wisely, it can help protect your investments during economic downturns.