Do you want to invest in gold and silver? We at NSG want it to be a simple and smooth process for our clients. If you are unsure whether an investment in physical precious metal is right or just want to know a little more about what it means, here is some information:
The first aspect to consider is that an investment in precious metals should be long-term. Something that you should always take into consideration when building your investment portfolio is diversification, which means spreading the risks by investing in various types of assets. The gold bars and silver bars we offer have Good Delivery status and are of the highest purity (999.9).
Gold has proven to be a very good investment over time. The first price quotation in 2000 was SEK 65,217 / kg, while the first quotation in 2021 was SEK 505,304 / kg. This gives an average annual return (CAGR) of 10.24%. The price is affected by many factors, what usually is mentioned to be the main impact on the gold price is the monetary policy and the consequences of how it is managed. In addition, world-changing events and crises can often be positive for the development of the gold price.
It is a fact that gold can have a positive development with a bad monetary policy and the previously mentioned situations, which means that many see gold as good leverage in a diversified investment portfolio. The leverage is realized in a scenario when other assets such as stock shares have a negative development during a period meanwhile gold can continue to develop in a positive direction.
There are various statements about how large a part of the portfolio gold should be, where most recommendations are usually between 5–20%. The main monetary proprietary of gold is that it preserves value in an inflationary economy. A clear example of this is that when the Ford Model T was first launched in 1908, it cost $ 850, which is cheaper than the current price of $ 25,000 for an equivalent model. The gold price in 1908 was 20.67 USD / Oz, which means that the car model cost about 1279g of gold. Today, the gold price is around 1850 USD / Oz and that means that the car today corresponds to approximately 420g of gold. Adjusted for inflation, the car is therefore significantly cheaper today compared to then.
Investment gold is exempt from VAT and the gold we sell from C.Hafner is made of 100% recycled precious metal that also is CO2 neutral.
Interest in silver as an investment has increased massively in recent times. It is often said that silver is a slightly riskier investment compared to gold. It is because silver has proven to be a more volatile asset. The fact that price movements are larger in percentage can also be seen as an opportunity for a better investment.
What has an impact on the silver price are largely the same factors as for gold, i.e. the monetary situation and the future prospects for it. What is different, however, is that silver is largely governed by industrial demand. Silver is the substance with the best thermal and electrical conductivity, which makes the metal interesting for a very broad target group. Due to these properties, silver is found in, among other things, solar panels, batteries of various kinds, and other electronic equipment. We are in the midst of great electrification of society at the same time as many emerging countries are on the rise, which means that the use of electronic products will hardly decrease.
In summary, gold and silver have proven to be good investments. Some benefits of these assets are:
Platinum is a precious metal that has properties that are essential in many important areas. Some examples are the pharmaceutical industry, automotive industry, jewelry production, and fuel cell industries. The price is thus driven mainly by industrial demand, although it can be found that the price correlates with other metals during specific periods.
As the industrial demand can vary from time to time, it often creates high volatility in the price. The current market value of platinum is far behind both gold and silver, which means that a larger buy and sell order can affect the price quite drastically. All the above-mentioned industries are interesting in such a way that one can find potential for increased demand in the future. People also usually talk about the risks that exist with the availability of platinum. Namely, just over 70% of the extraction takes place in South Africa and those who extract the most afterwards are Russia. It is thus a high concentration of assets, which can be a risk factor if something should happen in any of these countries that hinder the extraction of platinum. To cover demand, it is also required that a large part of the platinum that already exists in various forms is recycled.
Given the potential that exists as platinum is useful in many different industries and the risks that exist around the asset, it can be seen as an interesting investment.
NSG has been operating in the precious metals market since 1994 and has since grown and become one of Sweden's leading suppliers. We work for a good trading climate of precious metals where the environmental aspect accompanies us all the way. We provide investors, goldsmiths, and industries with high-quality materials in gold, silver, platinum, and palladium. With the highest credit rating (AAA) and long history, you can feel safe when you want to buy or sell precious metal with NSG. Welcome to contact us!
The purpose of this text is to inform. It should not be regarded as any form of advice or analysis. When investing in precious metals, you should make decisions on your own, considering your time horizon for the investment and your finances in general.
Investing in precious metals can be both an opportunity and a risk as the market price can rise and fall in value. Historical returns are never a guarantee of future returns. We recommend thorough research before choosing to invest in precious metals.