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How Buying Physical Gold and Silver Eliminates Counterparty Risks from Investments

Last updated 5 years ago

Counterparty risk, or the chance that an individual won’t live up to contractual obligations, is a major hazard of most investments. As sources of intrinsic value, gold and silver hold significantly less danger as investments. Read on for more information on how a gold or silver investment eliminates counterparty risks:

Gold and Silver Are Physical Sources of Value

If you own a rental home, you probably count on the monthly rent as a source of income. Unfortunately, nothing guarantees that your tenant will continue to honor your lease and keep the checks coming. In this same vein, investments in stocks and real estate rely on contractual agreements that can be broken. An investment in gold or silver bullion, on the other hand, is an investment in a physical source of wealth that you can keep in your home or in secure storage. In this simple arrangement, there is no contractual agreement to break; in order words, you’re completely in charge of your own investment.

Gold and Silver Have Established Track Records

Stocks, real estate, bonds, and even national fiat currencies can all lose significant value or fail completely without much prior warning. With over 4,000 continuous years of history as a medium of exchange, you can count on gold and silver to hold value. Since you can physically possess gold and silver or store bullion in a safe facility, investing in gold and silver can give you an easily liquidated source of capital in even the worst economic climate. While paper assets may become worthless, precious metals will always have value.

If you are interested in investing in gold or silver, the trusted experts at Capital Gold Group can help. Located in Los Angeles, we help investors throughout the region protect their assets with a safe and diversified precious metals portfolio. Call us at (800) 510-9594 to get started today.

Disclaimer: The representatives at Capital Gold Group are not financial advisors and the information provided in this blog should not be considered financial advice. The past performance of gold investments is not indicative of potential future gains.


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