Why You Should Not Buy Physical Gold And Silver

There are several reasons that investors find gold and silver attractive investments. And there are several ways by which they can accomplish their objective of investing in the precious metals.Show more

One disadvantage of buying physical precious metals is that they do not produce any cash flow. In order to make a profit from owning gold or silver, the spot price of the metal must rise. In contrast, a business, such as a gold mining company, can generate a profit by increasing its sales and earnings. An investor in a gold mining company would see his holdings increase in value when the price of gold increases, and would also benefit from increased revenues and earnings in the company.

Another drawback of holding physical gold or silver is the need to safeguard the precious metals. The owner of physical precious metals will need to insure the gold or silver and pay for safe storage in a bank vault or safety deposit box.

Another risk of holding precious metals is that if you need to sell, it might be difficult to receive the full market value for your holdings, especially if they’re coins and you need the money quickly. So, you might have to settle for selling your holdings for less than they might otherwise command in the market.

If someone wants to invest in precious metals but avoid the challenges and expense of owning physical gold, there are several options available. There is no reason to hold the physical asset when you can simply have the value of that in a secure and insured trading account.

The evolution of world governments and the efforts to drift towards a unified global system is a topic of much debate and concern. The implications of such a shift, especially on the economic front, are profound. This site aims to present the Global Macro Digest's ® perspective on the matter.

The world of investing is constantly changing. World governments are attempting to move toward a new world order of big globalist government and higher taxes. This is leading to profound changes in the organization of social systems and global political power. Big government and high taxes lead to economic stagnation and greater poverty. It also leads to great volatility in the financial markets.

Investors need to adapt to these developments The Global Macro Digest ® is dedicated to delivering valuable insights into the markets to allow investors to achieve a better understanding of the global investing environment and to make better informed investment decisions.