The Benefits of Geographical Diversification in Precious Metals Investing

While the recent ongoing tensions between Russia and Ukraine raise the risks of a protracted conflict within Ukraine, the war also creates concerns about the potential impact on financial markets and the global economy. Besides increasing the likelihood of market volatility, the invasion is likely to add to inflationary pressures by disrupting exports of oil, natural gas, and wheat from Russia and Ukraine and raising prices.

The impacts of the conflict are likely to vary depending on geography. While that injects some uncertainty into the global outlook, the US economy appears relatively insulated from the war. For individual investors and consumers in the US, the effects will most likely include additional inflationary pressures due to higher energy prices. These also led to recent stock market volatility, reflecting various investor concerns and uncertainty.

When it comes to the planning of your investment portfolio, inflation can affect your choices in the long run as money depreciates over the years. By diversifying your portfolio into Gold and Silver will help mitigate your overall portfolio risk. It is worth noting that over the years, Gold had outperformed the rate of inflation. If you hold some Gold in your portfolio, your risk will be reduced by a considerable margin. Similarly for Silver, they can perform the same function as Gold as they are positively correlated.

There are a few ways to diversify your Precious Metals investment geographically. If you’ve plans to hand down your physical bullion as part of your legacy to future generations, you can consider storing them in our allocated storage program at the Le Freeport. Le Freeport is a tax-free zone in Singapore which makes the vicinity an ideal storage premise. We also offer storage services globally in Hong Kong, New York, London and Zurich..

We are also one of the distributors of the only Government Guaranteed Precious Metals Storage Program in the world – The Perth Mint Certificate Program. The Perth Mint Certificate Program offers 3 storage options: Allocated, Pooled Allocated and Unallocated.

All with the same Government Guarantee and is an excellent program for your geographical diversification. You never know when you need your offshore precious metals especially when we witness now what is happening in both Ukraine and Russia citizens.

Do connect with us at [email protected] or WhatsApp us at +65 8893 9255 if you are keen to find out more about our Global Allocated Storage Program or the Perth Mint Certificate Program.

Joycelyn