There’s no such thing as a “sure thing” when it comes to investments. There will always be risks associated with investing in anything, be it real estate, stocks, or precious metals. Unfortunately, the precious metals industry is particularly susceptible to misinformation which can in turn scare people away from what is one of the smartest investment avenues in the world, be it in the form of gold or silver bullion bars and coins. To help you feel more confident in your decision to invest in precious metals, here’s a look at the truth behind some of the top myths about investing in gold and silver.
Myth: Rising Interest Rates are Bad for Precious Metal Investments
It’s true that interest rates are rising, but what’s more important is whether real interest rates are positive or negative (either running below or above the inflation rate). As long as interest rate hikes are behind the curve, gold and silver will continue to be strong performers. This partially explains why gold and silver experienced one of their greatest runs during the late 1970s when, despite rising interest rates, bond yields surged into the double digits.
Myth: Price Manipulation Undercuts Precious Metal Investment Gains
There is no asset class that is safe from price manipulation, but the idea that the powers at be suppress gold and silver prices to undercut gains is something out of a hardboiled conspiracy theory novel. The only case in which manipulation would make investing in precious metals unattractive would be if gold and silver prices were set artificially high. If the prices are artificially low (as claimed by the Gold Anti-Trust Action Committee and its many supporters), gold and silver investors stand to gain a lot more in the long-run when prices naturally realign.
The real story is that investing in gold and silver is one of the best forms of wealth insurance you can buy. GoldDealer.com provides competitive national pricing on the best selection of products like the Austrian 100 Corona . Call us toll-free at (800) 225-7531 to speak with one of our precious metals dealers about investing in gold and silver.