How To Protect Your Investment Portfolio In 2021


Investment management. Portfolio diversification.

Human hand stacking generic coins over a black background with hexagonal golden shapes. Concept of … [+] investment management and portfolio diversification. Composite image between a hand photography and a 3D background.


An unlikely set of investors drew worldwide attention when they banded together, via social media platforms, to drive up the value of shares in GameStop’s stocks. At the beginning of 2021, after months of financial volatility, this drastic change made people think about investments again. Now further into the year, as the world is recovering from the economic effects of the pandemic, investments are an important consideration. If we’ve learned anything from the unprecedented events of 2020, it’s that financial decisions should be calculated.

While everyone is looking at crypto, I wanted to take a closer look at precious metals. There’s safety in variety when it comes to investments. For example, the value of gold has only increased in the last year, making it a desirable asset. Diversifying your investments to include gold, silver, and other precious metals can add diversity to an investment portfolio, helping protect from inflation or volatile markets. 

Here are three practices worth exploring.

Diversify Your Portfolio with Liquid Assets

A diverse investment portfolio could include many different things. Some investors choose stocks, others real estate or tangible assets like precious metals. Liquid assets are worth considering in any investment portfolio because they can be easily converted into cash if needed. As they say, “cash is king,” and it’s worthwhile to ensure that a portion of your investment portfolio stays liquid. 

Liquid assets can be anything from cash kept in a savings account, bonds, money markets, mutual funds, and so on. 

Ultimately, it’s important to have easy access to your investments. Precious metals, like gold and silver, can help individuals diversify their portfolios while keeping their assets accessible. Experts from Safeguard Metals, a company that specializes in protecting precious metal investments and IRAs, say that gold assets could be less affected by changes in the market. The investment also holds its value over time, even if the value of a dollar decreases.

Protect Your IRA  

Most people make investments with their future in mind; whether this looks like buying a home, investing in a college savings plan, or investing in stocks, bonds, and so on, investments are concerned with the future. For many people, that means their IRA or individual retirement account. 

Gold and silver IRAs can help individuals keep their investment portfolios diverse while providing a tangible asset to have on hand. Historically, gold and silver can be less volatile to market changes and inflation and have had enduring value over time. After a year of such significant economic volatility, on a global scale, many individuals found their retirement accounts vulnerable to such significant changes. Incorporating gold and silver into these investment accounts can help provide yet another layer of protection.

I recommend working with experts when incorporating or switching to a gold or silver IRA. According to Safeguard Metals, “A Gold IRA is similar to a traditional IRA; however, instead of holding paper investments, you can own physical bullion coins and bars. An IRS-approved custodian holds in safekeeping the contents of the Gold IRA for the benefit of the owner.”

Start With Historically Successful Markets

In times of economic uncertainty, common sense says to invest in something dependable. Stable markets are worth consideration for any curious investor. While it may not yield the quick return of a more risky investment, like those GameStop investors mentioned earlier, it is worth exploring if history is any guide.

Investing in gold or other precious metals has proven to be a stable investment. In fact, in 2008 and 2009, gold increased during the Global Financial Crisis. 

According to Safeguard Metals, given the global economic slowdown, it is crucial to take the first steps towards diversifying and protecting your investment portfolio. Know that the economy will fluctuate, but just like in marketing – play the long game.

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