Thanks to modern technology, investment options are opening up to more and more people. For those with little prior experience, though, the array of options available to a new investor can be daunting. Even those with some successful investments under their belts are always looking for the next good addition to their portfolio and finding a plethora of potential options. Amidst all these options, buying precious metals stands out as a good choice for any investor— but why?

The term “precious metals” includes silver, platinum, palladium, and others, but the metal most often discussed is gold. Even our language values gold above the others, with terms such as “the gold standard” referring to not only a specific economic meaning but also a general feeling of quality. Gold is both beautiful and useful, being one of the metals that can be most easily shaped into any form. Many experts recommend buying precious metals, particularly gold, as part of any investment portfolio, for a few reasons.

Absolute Value
This isn’t to say the price of gold doesn’t fluctuate. Like any commodity, the value of gold and other precious metals varies depending on a number of factors. In the short term, it can seem to vary wildly, and a quick glance might make a potential investor feel like buying precious metals is not such a safe investment after all. However, the fluctuation of the price of precious metals is actually somewhat controlled. Unlike stocks and shares, which only hold the value currently assigned to them by the current business atmosphere and popular opinion, gold does have a certain undeniable value. It is a relatively rare resource that is used for both function and decoration by people all over the world, and it is a tangible object. This is the chief advantage of buying precious metals: there is no way for their value to fall to nothing or next to nothing. There is a bottom “floor” that the price will not go below, and this protects your investment.

Remarkable Stability
Because of the factors discussed above, in the long term, gold and other precious metals are a very stable investment. While the precise numbers may fluctuate, the fact is that the general value of gold in terms of purchasing power hasn’t changed all that much since it was used as currency in ancient Rome. The change that has occurred has been a rise in value. With that kind of history, it’s easy to see that there is plenty of stability to be had in investing in gold or otherwise buying precious metals.

Portfolio Diversity
Diversifying one’s portfolio is a common investing tip. It’s an old proverb not to put all of your eggs in one basket, because if that one basket drops, all of your eggs will break. Buying precious metals is a good way to get another basket going, and your golden eggs will stay safe and secure even if your primary portfolio basket drops. Investing in some type of tangible good with a serious portion of your portfolio is recommended by most experts for exactly this reason, and precious metals are a particularly good way to do so.

With the instability that the economy has been suffering over the past several years, it is especially important to keep financial security in mind when making any investment decisions. Buying precious metals is a low risk investment with appreciable returns, the kind of choice that every investor dreams about. At the very least, it’s something that anyone starting a portfolio should look into when making their initial decisions.