Why Gold?
- Hedge against uncertainty
Gold is a trusted asset when market volatility is high. - Good hedge against inflation
Gold prices have historically risen in tandem with inflation. - Gold returns tend to climb during periods of low yield
Yields will eventually rise when the US Federal Reserve decides to raise interest rates. Investors can cushion the potential downside impact by buying USD.
Why Silver?
- Capital appreciation potential
Silver has important industrial applications and its price will rise with the demand for solar energy and electric vehicles. - Cheaper alternative to gold
Silver is more accessible to beginners who have lesser capital. Like gold, it can be used to hedge against uncertainty and a beneficiary of low yield environment.