The benefits and risks of investing in gold and silver

PITTSBURGH — With interest rates on the rise and inflation a major concern -- is there something you can do to protect your hard-earned savings?

Experts say during times of economic stress and recession- wary investors may turn to precious metals. But what do you need to know before you go for the silver and gold?

According to analysts, including those at J.P. Morgan Wealth Management, gold increases in value when the U.S. dollar declines due to inflation.

Gold sellers like Eddie Lowy of Banner Coins in Pittsburgh, say lately business has been brisk.

“You will see precious metals significantly higher in the next two to five years,” says Lowy.

Think of it this way- right now, an ounce of gold costs just over $1,900. Many analysts are forecasting gold prices will be over $3,000 by 2025.

Money managers suggest if you’re going to invest in gold- start small. Eddie Lowy tells his customers to limit purchases to between five to ten percent of their discretionary income.

“We’re talking about the money that you make after taxes, after living expenses and after pleasure expenses. Do not buy with money you’re going to need. Do not buy with something that a week, or a month later you’ll need to cash in,” says Lowy.

Experts say if you decide to buy gold, consider this: you can purchase gold bars or gold coins from a dealer but remember you should have a place to keep it secure, like a safe.

If you don’t want to purchase physical gold, you can invest in gold futures or buy stock in the mines that produce it.

Analysts say while people can invest in other metals, gold is traditionally the most consistent performer; however, the experts say it’s important to realize that no investment comes without risk, so they advise people to do their homework first.

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