Investors are beginning to trade paper for real assets and figures suggest that the move is just gaining momentum!
The world we live in today is a changed world. It has changed from what it was a decade ago. It is not even the same world as it was in 2010. With the ever changing economic conditions and the turbulent financial environment, investors today face more challenges than ever to choose between different investment options.
It might sound a bit cliché to state that the world is rapidly changing; as we all know that it is, but if you look at the statement from the perspective of an investor, this change is not very positive. The last decade has seen significantly lower returns in comparison to the booming 1980’s-1990’s era. Severe recessions and exceptional levels of market volatility experienced by investors in recent times have shaken their confidence badly.
Investment in Precious metals: A New Paradigm
In the current low yield environment where the volatility is high and markets do not behave in the manner they used to a few decades ago, investors have lost their self-confidence for investing in high yield investments due to the higher risk factor attached to it.
For many, the investment approach still remains defensive. They still find it safe to preserve their principal amount rather than earning some return by selecting alternative investment options.
Alternate investment options offer new opportunities to investors to earn greater returns through new and bolder investment strategies. As people struggle with the repercussions of this brave new world, they are beginning to redefine their risk appetite which is a very positive sign.
The fact is that yields in recent times have fallen so low that most fixed income asset classes are no longer able to keep pace with the persistently rising inflation. They can no longer be relied upon as income generating assets today as they were previously.
So what one should do? Luckily we still have an answer to this question. There are still investment options available for you with which you can get a chance to earn better yields. An example is precious metal investment.
Alternative Investment Opportunities: Precious metals Investment
Nevertheless, if worry continues to be the market watch word, a significant number of investors in recent times are identifying and seeking new investment strategies in an effort to cope with enduring economic uncertainty and persistently low interest rates. The challenge is bigger-to earn yield in no yield environment.
Precious metals investments are a new upcoming way for investors to diversify their investment portfolios. Holding metals is especially a great way of spreading portfolio risk during the times of economic upheaval. To many people, buying precious metals represents a safe haven approach to diversification and a partial hedge against equities.
Most recently, the prices of precious metals has been a much discussed topic of discussion. It is not much of a surprise that investors are turning towards investment in hard assets. God prices (as of February 2014) extended gains in order to reach a high of $1,294.10 showing a rise of 1.6% in the process. The precious metal complex showed a rise of 0.5%, prices of silver rose up to 0.4%, whereas the PGM showed a rise of about 0.2%.
Now is the right time to invest in Precious metals
Alternative investments as a part of carefully constructed portfolio have the potential to generate above average returns and even have the tendency to reduce the overall risk of your portfolio owing to the fact that they less likely to move in tandem with bonds and stocks.
The current financial climate calls for investors to redefine their risk appetite and devise investment strategies that offer them high yields instead of restricting themselves to their narrow risk curves. While investors struggle for their survival in the current financial environment, precious metals investment offer a new ray of hope to investors who are bold enough to get out of their risk curve and uncover the investment opportunities.