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Why investors are drawn to precious metals

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Both gold and silver have timeless benefits for investors.

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As 2024 comes to a close, the U.S. economy continues to navigate choppy waters. Inflation, while down from its peak, still hovers at 2.44%. The Federal Reserve has maintained high interest rates at a range of 5.25% to 5.50% to keep economic pressures in check. In this uncertain climate, more investors are turning to precious metals as a safe haven.

The precious metals market has seen unprecedented growth this year. Gold prices have shattered records, reaching an all-time high of over $2,700 per ounce in October. But it’s not just gold — silver and platinum have also grabbed attention, with demand surging across the board.

We asked three financial experts to weigh in on this trend. Their insights tell us why these assets are becoming so attractive and how they might fit into a well-rounded investment strategy.

Learn how precious metals could boost your portfolio here.

Why investors are drawn to precious metals

“Precious metals provide a hedge against market volatility, particularly when conventional assets are [underperforming],” explains Steven Kibbel, certified financial planner and senior editor at InternationalMoneyTransfer.com. This stability during economic turmoil is a key factor driving investors toward gold, silver and platinum.

The industrial applications of these metals add another layer of appeal. For instance, “Gold is used in medical technology [for non-allergenic implants] and in aerospace to protect against radiation and heat,” notes David Weild, chairman and CEO of Weild & Co. He adds that silver is essential in solar panels and nuclear reactors, while platinum finds applications in the automotive, jewelry and oil industries.

These alternative assets can also preserve wealth long-term. “The risk is low with gold, especially when [you compare it] to other derivative investments,” says Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX).

Besides these practical use cases, our experts shed light on three other big reasons investors are drawn to precious metals:

A hedge against inflation

With inflation still above the Federal Reserve’s 2% target, investors are looking to precious metals as a hedge against potential currency devaluation.

“As inflation increases, the value of precious metals holds steady,” says Kibbel. This stability makes gold, silver and other precious metals appealing alternatives to traditional currency-backed investments. While the dollar’s buying power fluctuates, an ounce of gold tends to maintain its value over time.

Protect your portfolio from inflation with gold now.

Portfolio diversification

Expanding on Kibbel’s insights, Weild emphasizes, “Precious metals are a form of inflation-resistant hard assets.” He places them in the same category as real estate and commodities, highlighting their role in diversifying portfolios beyond stocks and bonds.

But how much should you invest? Weild says it depends on your risk tolerance and economic outlook. Traditionally, financial advisors have recommended a 5% to 10% allocation to precious metals.

Tangible assets in uncertain times

While digital investments have fluctuated wildly, physical gold and silver remain steadfast. This stability isn’t just about monetary value — it’s also psychological.

“Investors have more control over their assets when they own actual metals, which can be handled and stored, as opposed to stocks,” explains Kibbel. “[During market turbulence], clients who had physical gold found solace knowing their [precious metal] held its value while other investments [performed poorly].”

His observation underscores how many investors find comfort and security in tangible assets — especially during periods of economic uncertainty.

How to start investing in precious metals

You have several options when adding precious metals to your portfolio. Each method has its advantages and challenges:

  • Physical metals involve buying actual platinum, silver or gold bars and coins. “Physical gold is considered safe as it carries no contractual risk,” says Elliott. However, it requires secure storage and can be less liquid than other options.
  • Exchange-traded funds (ETFs) track previous precious metal prices without requiring physical ownership. “ETFs offer liquidity and exposure to precious metals without the trouble of storage,” says Kibbel. However, with this option, you don’t physically possess the asset.
  • Mining stocks are investments in companies that extract precious metals. “Mining stocks are more volatile and exposed to a wider range of market risks, but they may yield larger rewards if the firm performs well,” Kibbel cautions.

The best investment choice depends on your goals and risk appetite. For example, “ETFs are highly accessible and typically very liquid,” Elliott points out. So, these could be ideal if you only want to invest in metals for a short period. On the other hand, physical metals might be better if you’re seeking long-term stability.

The bottom line

Some experts suggest now might be an opportune time for gold investments, given the potential for further price increases. But ultimately, your investment approach should align with your broader financial picture and comfort with market fluctuations. Before deciding, research and consult a financial advisor to determine if adding precious metals now makes sense for your portfolio.

Learn more about investing in gold here.



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“Tiger King” Joe Exotic announces prison engagement

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Joe Exotic, made famous in the Netflix series “Tiger King” and currently serving time in federal prison, says he is engaged to a fellow inmate in Texas and hopes to get married.  

Exotic, whose real name is Joseph Maldonado, is currently incarcerated at Federal Medical Center Fort Worth. He submitted a marriage application to the federal prison to wed fellow inmate Jorge Marquez Flores, he announced in a news release Wednesday. 

Maldonado was convicted in 2019 on 21 counts, including 19 counts of wildlife crimes and two counts of hiring hitmen to kill animal activist Carole Baskin. He is serving a 21-year sentence. 

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Joe Exotic, Jorge Flores

His fiancé, 33-year-old Jorge Marquez Flores, originally from Mexico, is serving time for immigration-related issues, according to Maldonado’s news release.

According to Maldonado, both men are optimistic the prison will approve their application and have “high hopes” that Maldonado’s appeal will succeed. He hopes the two would be released from prison in mid-2025. 

In his news release, Maldonado also requested a presidential pardon for both he and Flores, as well as asylum for Flores. 

“I wish someone that is President or wins the Presidency would do the right thing and pardon me so I could move past this nightmare that my own country has caused for the last 7 years of my life,” Maldonado wrote in the news release. “All I did was build a zoo and some people were very jealous. Then I was put into prison by my own country.”



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10/30: The Daily Report – CBS News

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10/30: The Daily Report – CBS News


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Lindsey Reiser reports on how both presidential campaigns are capitalizing on the final days before Election Day, some of the biggest down ballot races to watch, and the impact of China’s new international adoption policy on families in the U.S.

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What Harris, Trump campaigns are zeroing in on ahead of Election Day

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What Harris, Trump campaigns are zeroing in on ahead of Election Day – CBS News


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Former President Donald Trump and Vice President Kamala Harris are looking to emphasize their key campaign messages in the homestretch of the 2024 election. Both candidates also reacted to President Joe Biden’s “garbage” comments. CBS News’ Libby Cathey, Weijia Jiang and Major Garrett have the latest on the campaigns and their key differences.

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