When you think about investments, one of the most popular choices is gold and silver. These precious metals are undoubtedly treasured for their consistent value. In the olden days, and even now to some extent, these metals are considered a status symbol.
However, even with their reputation, fewer and fewer people, especially in America, are willing to invest in these precious metals. Statistically, less than three percent of American adults own physical gold and silver for investment purposes. And the reasons for this are pretty common. So even if you are confident about purchasing and investing in gold and silver for dummies, it pays to know the following seven common fears about investing in precious metals—in case you encounter them along the way:
1) Fear of Loss
This is often the initial fear among investors, not only in precious metals but also of anything worth investing for that matter. Rightly so, since these things have the possibility of having their values depreciate in the long run. On your end, this means having to suffer economic loss. So before pouring everything into these precious metal investments, it helps to identify rising and falling patterns in their value.
2) Fear of Gaining Less
Disregarded by some, debts bearing negative interest rates now have a significant and rising percentage of almost all the rest paying virtually zero interest. What this points to is that the common notion of precious metals not paying interest or dividends is basically non-existent. So there is no need to actually fear to own physical gold and silver as an investment compared to other potential investment.
3) Fear of Being the Odd One Out
Usually, when too few people follow a trend, then there must be something wrong with it. And this mindset has continued to remain even among investors especially in gold and silver. People have become very wary of the current trends in investments. Many people will consider only investing what is popular at the time without even considering the potential gain or loss. And the reason for this is it feels so much safer this way. Even if it isn’t.
4) Fear of Failure
In line with the previous fear, if purchasing such precious metals for investment ends up with you losing money, then the result would ultimately create a feeling of personal failure. It’s natural to feel responsible for not making a profit. However, if you purchase a popular investment and it likewise performs poorly, then the feeling of personal failure does not hurt as much as since you know that it is not only you who will take the blow. This is the reason why investing in precious metals takes a lot of courage and planning to actually see through potential losses.
5) Fear of Rejection
As with going against the grain, it is not shocking now how people will respond to your choices considering that investing in precious metals is usually considered as odd today. So even if you have the desire for it but not the guts to see it through, you might get easily swayed by the fear of rejection you will most likely have by having such unusual holdings.
6) Fear of Storage
Since these precious metals are physical assets, then storage is definitely in the picture. This fact might initially turn investors off since you will have to look for a proper place to store these products somewhere safe. And usually, storage could cost some money.
7) Fear of Being Seen as Unpatriotic
If you are in America, then you may have probably heard of gold being called a “barbarous relic“. People before would point you out for having a lack of faith in the U.S. economy. But this shouldn’t worry you now since such thinking is no longer entertained in this modern day.