You Don’t Need to Be Rich to Invest

By David Thompson

Feb 09, 2022 12:29 PM EST

You Don’t Need to Be Rich to Invest(Artem Beliaikin on Unsplash) (Credit: Getty Image)

Are you considering investing in an asset-hard or soft-but don't have much, if any, investing experience? It makes sense if you feel intimidated. After all, fortunes are made and lost in the financial market at the drop of a hat. 

But that doesn't necessarily mean you shouldn't invest. On the contrary, when you invest wisely, you can do yourself and your money a favour. More, you can develop a better understanding of the world of finance. And you can learn how to adjust and refine your financial portfolio over the years to maximize potential profits and minimize potential risks. 

Why Invest? 

There's a common misconception that investing is reserved for the rich and risky. But in reality, you don't need much to invest. Even putting a little bit of money into an asset enables you to possibly save or even grow your money over time. 

You might be asking yourself why, if you want to save or grow your money over time, you wouldn't simply put your money into a traditional savings account with your bank. By putting your money into a traditional savings account, you risk preventing your money from keeping pace with inflation. That's because, squirrelled away in a traditional savings account, over time your money might earn only a small amount of interest and inflation might decrease its value. 

When you invest your money in the right assets, however, your money may keep up with or even outpace inflation. When that happens, the value of your money now may be the same or more than the value of your money in the future. That is to say, you might not merely save; you might even make money. 

Safe Haven Assets

If that sounds appealing, consider investing in a safe haven asset. It's an asset that tends to increase or at least retain value during volatile financial times when the stock market is more unpredictable than usual. 

Precious metals like gold and silver are considered safe haven assets. It's typically more affordable than buying gold, however, to buy silver online (or in-person) in the form of silver bullion. Note, however, that due to its lower barrier of entry, the additional premium you pay for physical silver is much higher the additional premium you pay for gold. 

Gold and Silver Bullion 

Gold and silver bullion come in the form of bars and coins and are stored at governments and central banks as reserve assets. When you purchase a piece of gold or silver bullion, you essentially purchase its weight equivalency of the precious metal. 

Recently, the price of gold per ounce has been hovering around USD 1,815, while the price of silver per ounce has been hovering around only USD 23.13.

The Bottom Line

When looking to invest, you have virtually unlimited options, but, if you're a beginner, investing in gold and silver bullion can help you preserve your wealth against inflation.

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