Are you thinking of investing in bullion?

This year Canada's inflation rate hit a 40-year-high. Soaring inflation isn't just bad for your monthly grocery budget, and it's also a silent savings killer. Instead of appreciating in value, inflation eats away at investments over time. 

If you want to protect your resources and savings from the insidious effects of inflation, you need to diversify into assets that can retain their value during times of inflation and economic chaos. 

Gold bullion and precious metals are one of those asset classes. Protection from inflation isn't the only advantage gold and silver bullion holds. 

Keep reading to learn more about the benefits of investing in bullion. 

Precious Metals Are a Renowned Inflation Hedge

Gold and silver are famous inflation hedges, and they are proving their metal (pardon the pun) once again. Survey results reveal that 1-in-4 Canadians are investing in either gold bullion, silver bullion, or real estate to protect their savings from inflation. 

One of the reasons why precious metals can be such a strong inflation hedge is that their values rise when the value of money drops. Because gold and silver are tangible assets with a limited supply, their circulation can't easily be inflated. 

When reserve banks print and increase the money supply, this automatically devalues the currency. If more units are in circulation, each unit will be worth less. 

Besides being a solid inflation hedge, gold and silver also don't depreciate.

Gold and Silver Are Underpriced

Another reason you might want to invest in precious metals right now is that gold and silver are underpriced. Even though gold's price has risen steadily over the last 20 years, current prices do not reflect the real value of precious metals. 

As we just mentioned, any time the money supply is dramatically inflated, the value of gold and silver usually rises. 

If you take a look at this money supply chart on the 25-year timeframe, you'll see that 2020 marked the biggest money supply spike in Canada's history. The rise in money supply was astronomical, but the rise in gold's price didn't seem to reflect this fully. 

Gold's value did shoot up during the pandemic, but this was largely thanks to investors and consumers who ran to it as a safe haven asset. 

Comparing money supply with the gold price movement is, of course, a simplification in a complex market environment. However, strong fundamentals and historical ratios all indicate that gold is underpriced by roughly 50%. Instead of trading at around $2,300, it should be closer to double this. 

Precious Metals Are Tangible Assets

Besides being inversely related to currency values, precious metals are also an inflation hedge because they're tangible assets. Tangible assets have a natural value and perform well during economic uncertainty. 

Interestingly, the dollar has lost 99% of its value against gold since 1933.

Precious Metals Are the Oldest Form of Money

Thanks to their tangible value and durability, precious metals are the oldest form of money, dating back over 5,000 years. 

Gold and precious metals have also survived the changing of many empires. Something other financial instruments have failed to do yet. 

Bullion Does Not Need Electricity

Whether you're worried about a global black-out, the evaporation of digital money or the energy-hungry nature of cryptocurrencies it's also worth noting that bullion doesn't require electricity. It is one of the few assets that can exist without energy. 

Bullion Comes With a Low Barrier to Entry

Unlike other tangible assets like real estate, you can get started investing in bullion with relatively small amounts. Gold and precious metals can be bought in many forms, large or small, coin or bar. 

For a few hundred Canadian dollars you can invest in a 1/10 oz gold maple leaf coin.

Gold bullion bars are usually sold in heavier weights than coins. But, with us, you can also purchase small gold bars. Our smallest weights are 1-ounce gold bullion bars. 

No Maintenance, Management or Administration Fees

Because bullion does not depreciate, you don't need to pay maintenance fees. You also don't have to pay administration fees, mutual fund fees, management fees, etc.

What's more, investing in precious metals is secure and confidential. As long as you arrange secure storage for your bullion, you won't have to worry about your assets evaporating because someone cooked the books. 

Gold and Silver Bullion Is Easier to Move Between Jurisdictions

Precious metals are also easier to move between jurisdictions than things like mutual funds. If you want to move your bullion, all you have to do is arrange for safe transport, and fulfill any applicable paperwork requirements. 

Precious Metals Have Important Industrial Uses

Not only are precious metals tangible assets with an inherent ability to store value, but some also have critical industrial uses. Both gold and silver are excellent conductors. 

For instance, every Tesla requires roughly 1 pound of silver. Solar panels also require silver, which is a bullish indicator for the silver market, as the solar energy sector is poised for growth. 

Precious Metals Are Still Legal Tender

Finally, did you know that Canadian maple leaf coins, whether gold, silver, or platinum, are legal tender? The sale of Canadian maple leaf coins to a value of less than $1,000 are exempt from capital gains tax in Canada. 

Tips for Investing in Investing in Bullion

If you want to start investing in bullion, the most important tip is to source your precious metals from a trusted gold and silver provider. You should also make sure you're not paying an inflated price. 

If you're interested in buying gold and silver coins, we'd recommend digging into the numismatic values of precious metal coins. The potential for numismatic value can be a great way to maximize your investment, but you need to make sure you're not being ripped off by questionable merchants claiming that a common coin has a high numismatic value. 

Finally, when buying gold or precious metals, you must ensure that your bullion has a safe place to live.

Investing in Bullion Made Easy

Investing in bullion can help you hedge against inflation and store your money in real, tangible assets that have stood the test of time (and multiple economic collapses). 

What's more, investing in bullion has never been easier. Gone are the days when you might have had to visit a shady gold dealer in a backstreet or deal with a large, convoluted financial corporation to make a gold investment. 

If you want to invest in precious metals the easy way, we're here to help. We offer a variety of gold silver, and other precious metals, in bullion bars and coins. With us, you can enjoy multiple ways to pay, including cash, bank transfer, debit card, Paypal, and more. 

Browse our gold selection to get started buying gold and silver bullion the modern way.