The bear market of 2022 is on. The anomaly of the post-COVID bull market has run its course and the current down-slope of the market appears to have no end, at least in the short term. Whether you’re new to investing or a seasoned veteran, the question remains: what do you invest in to weather out the storm? While treasury notes and savings bonds are always a safe haven, you can get a better return from an old-age resource: precious metals. Find out why you should consider precious metals and coins during a bear market.
Stocks, ETFs, and mutual funds can fluctuate rapidly during a bear market. Even when the market appears to stabilize, disparaging news can cause a massive drop in the price of securities and indices.
Precious metals and coins, on the other hand, tend to hold their value, even during a market downturn. Not only do they maintain value, but they can also increase in price as more investors sell off stocks and invest their money in metals and coins. If you’re looking for an extreme value buy, these commodities provide a bit of certainty amid fear, uncertainty, and doubt.
You Own It
Contrary to popular belief, when you buy a stock, you typically don’t own it outright. Rather than having the security in your name, your brokerage actually holds it on your behalf. Without getting diving too deeply into this interaction, you’re not always in control of your ability to buy and sell — a phenomenon seen during the GameStop short squeeze in January 2021.
With precious metals and coins, you don’t have to worry about any other party controlling your assets. You won the product outright and can do with it as you see fit. This type of counterparty risk is almost exclusive to metals and coins, giving you the upper hand during a bear market.
Usage as a Hedge
Due to the volatility in the stock market, which can sometimes be accompanied by heavy inflation or even stagflation, hedging your bets is tantamount to preserving your savings or retirement. While you could choose inverse ETFs, stock shorting, or put options, all of these also come with a degree of risk associated with experience in stock trading.
But if you’re a novice to options, shorting, or more obscure securities, you probably don’t exude confidence in these purchases. That’s what makes precious metals and coins so enticing. With minimal knowledge of the stock market, you can invest in something that hedges against a bear market without making any complicated transactions or risky bets.
Need Money? We’re here to help.
While pawn shops and gold stores will certainly buy your precious metals, they rarely provide market value or even retail value. That’s why we ask you to come in and see us as your coin dealer in Newport Beach CA. We know you have many choices when buying and selling but it’s best to maximize the amount of money you receive for your investment. The only thing you have to figure out is what precious metals or coins to invest in next.
If you’re planning on having a coin evaluation done at our gallery, we ask you to please book an appointment first. We want to make sure we give you the time you expect and deserve for a proper evaluation. Customer service is our top priority, we want to be focused on helping one customer at a time. Contact us to book an appointment today.