No matter what investment you’re pondering, it’s wise to consider your age. At different times in your life, you have different needs, responsibilities, financial means, and goals, all of which may play a part in your investment strategy.
Many people decide to get into the precious metals market after years of disappointing results from other types of investments. Yet, does the fact that middle-aged and older adults tend to favor precious metals mean that there’s a certain age when it makes more sense? It’s a question worth examining.
Why Choose Precious Metals, Anyway?
Before we look at the different investment needs and goals you may have at different times in your life, it makes sense to get a feel for the benefits of investing in precious metals in general.
Hedge against Inflation
Inflation is a great money-eater. When you hold paper currency, you’re at the whim of the government, which can simply print up more money whenever it chooses. All those dollars that you set aside in faith that they will be there when you need them can lose their value very quickly when economic times are rough.
Precious metals, on the other hand, don’t lose value when the economy suffers. While paper money rarely regains after an economic crisis is resolve, precious metals tend to increase in value over time. This allows you to hold onto what you put in for the long term.
Safe-Haven Investing
Safe-haven investments are those that you can count on when other investments become too risky. In times of political turmoil and civil unrest, you might be unwise to invest where the volatility of the market is most evident. Typically, the stock market as well as real estate and other investments lose during turbulent times. Not so precious metals. Instead metals like gold, silver, platinum, and palladium tend to gain in popularity during times of instability.
Owning Something Tangible
When you hold physical precious metals, you own something you can see with your eyes and hold in your hands. There’s a certain kind of confidence that comes with owning something tangible. You never need doubt that your investment is secure. All you have to do is take it out and look at it to know that, yes, it is still all yours. What’s more, the confidence you feel may carry over into other areas of your life, helping you be more successful at whatever you do.
Liquid Assets
So, you buy precious metals. You store it. You know it’s there if you need it. What do you do if that time comes?
If you held real estate as an investment, you’d have a hard time getting what you need from it in a reasonable amount of time. Then, even after you found a buyer, you have to wade through negotiations and miles of red tape. With precious metals, though, you simply find a buyer and make the sale. If you can’t find a private buyer, you can sell the precious metals to a dealer. There’s always a way to make the sale in a relatively short amount of time.
Retains Its Value Over Time
Investing fads come and go, but precious metals have historically remained relatively stable in the long term. Gold you invested in when you were young will likely be just as valuable if not more so when you get old.
This is especially noticeable since that rapid advancement of technology began. You might make some money investing in a new technology now, but that same stock might be worthless as the new advancement arrives.
However, precious metals have been valuable since ancient times, and there is no reason to believe that they will ever lose their worth no matter how long you keep them.
Diversification
Every great investment portfolio is diversified. Be relying on only one type of investment, you put yourself at risk if that one sector suffers or fails. You can diversify your general investment portfolio by adding precious metals. Beyond that, you can even diversify the precious metals portion of your portfolio by choosing different metals as well as different forms of the metals, such as new coins, collectors coins, and bullion bars and coins.
True Money
Although trading your precious metals directly for the things you need and want might not be your first choice, the option is there if you prefer it. A silver coin or a gold bar is a form of money as surely as a wad of cash. No central bank determines the value of your precious metals, either. Its intrinsic value and popularity makes it a true form of money that you can rely on whenever you need or want.
Limited Supply
There’s a reason they call them precious metals. These metals are in limited supply. There’s no such thing as deciding you want more gold and then printing it up immediately. It has to be discovered, mined, and brought to market. Even if it were possible to do that endlessly, the supply would run out long before the desire for gold subsided.
If All Else Fails, Precious Metals Remain
Suppose the government fails. Suddenly, all the paper money you had would lose its worth. Now suppose that didn’t happen, but the company you invested in suddenly went under. The stocks you had in that company would now be worth less than the paper they were printed on.
Precious metals are different. No matter what happens to any company or the government at large, gold, silver, platinum, palladium and other precious metals still have intrinsic value.
What Is the Right Age to Start Investing?
So now, considering all the reasons anyone might have for investing, what’s the right age to make the leap into precious metals? Here are some of the motivators and advantages for each age group and some investment options for each.
Investing after Age 40
Motivators: At age 40 and beyond, you’re typically working more steadily towards your retirement goals. You’re also building family wealth that you may someday leave to your heirs.
Advantages: Precious metals give you the security of knowing that your assets are protected. You don’t have time to take on investments that might or might not pan out. Since precious metals are tangible, physical objects, no one has to deal with a ton of paperwork to receive your holdings after you die.
Options: By the time they reach age 40, most people are at the peak of their earning ability. This is a good time to make larger investments in gold, such as gold bars or monster boxes of coins.
Investing from Age 30 to 40
Motivators: When you’re 30 years old, you typically have plenty of money to not only meet your daily needs but make major purchases like buying a home. You may have children at home, so saving money back for their further education might be a consideration as well. At the same time, you’re still young enough to take some risks.
Advantages: One advantage of getting into precious metals in your 30s is that you can save back some of your holdings for later needs and at the same time, make riskier investments to increase your wealth in the short term. You can do both with the right precious metals choices.
Options: For you, nearly any type of precious metals investment might make sense. For stable, long-lasting value, bullion is an excellent option at your age. You can also study old, rare coins and choose the ones you expect to become more popular in the future.
Investing Starting at Age 18
Motivators: Many young people don’t feel a lot of urgency to begin their investment portfolios in their late teens and twenties. Yet, at this age, you still have a lot to accomplish in life. You want to set up yourself for a good, high-quality life. Depending on your preferences, that might mean having a family, buying a home, starting a business, or traveling the globe. Although you probably aren’t thinking of retirement yet, the precious metals you hold will certainly come in handy when that day comes.
Advantages: 18 to 30-year-olds tend reap the greatest rewards of any age group. Not only do you increase your holdings gradually over time, but you also develop the habit of setting aside precious metals regularly
Options: During the first decade or so after you reach adult status, the world finally opens up to you. You can choose what you like, within your financial means, of course. Some people choose to purchase a silver coin every month until their fortunes improve.
If you’re going to buy new coins with limited mintage, now is an excellent time to purchase them and hold onto them for the long term. With plenty of years ahead of you, they have time to increase in value significantly.
Some young investors give themselves a yearly gift of an ounce of platinum or gold. Because you might not have a lot to invest, remember that what’s most important is consistency.
Gifting Precious Metals to Your Children
Motivations: By starting your child’s investment portfolio when they’re still very young, you teach them valuable lessons about how to invest and manage investments. They also come to feel the pleasure and fascination of owning something that has real value in the adult world. They love to look at unusual coins as well and may develop a lifelong interest in precious metals investing.
Advantages: Time is on the side of a child. When you buy them a coin or bar and teach them its value, that simple act can improve their life far into the future. You’ll also have fun showing your child the features of the coin. If the child is a teenager, you can have just as much fun following the precious metals prices with them.
Options: For children, you can hardly go wrong if you choose a coin that comes with a story. Do some research to find out about interesting coins and the histories behind them. They also enjoy looking at different coins, so you might choose a different one each month.
What’s the Bottom Line?
So, what is the answer? When is the best age to start investing in precious metals? What the best age is in general is nothing more than theory. What matters is what is the best time for you to invest? The answer is that the best age for you is the age you’re at right now. You’ll never have more time to reap the rewards than you do right now. And, if you’re ready to start, precious metals investment advice is as close as your phone or computer. Call us at your convenience to talk to a precious metals advisor at 1 (877) 795-9585 to learn all you need to get started at this right age in your life!