17 Trillion Reasons to Own Gold and Silver Stocks Right Now

Historically, the stock market is the greatest creator of long-term wealth. Inclusive of dividend reinvestment, and when adjusted for inflation, it's returned an average of about 7% per year, working out to a historic doubling of wealth about once per decade. That means it's left all other asset classes eating its dust, including bank CDs, bonds, housing, and even popular safe-haven asset gold and its lustrous twin, silver.

You'll often hear analysts suggest that investors keep their distance from these safe-haven assets, given that they fail to pay a dividend and have drastically underperformed the broader market. But if investors consider a combination of the two -- i.e., avoid physical metals, but purchase gold and silver mining stocks -- they could be handsomely rewarded over the next couple of years.

Gold and silver are often referred to as "safe-haven" assets because they outperform during periods of uncertainty. If the stock market has a bad day, or a Trump tweet riles investors, investors might consider turning to gold as a store of wealth to ride out the temporary storm, so to speak.

Continue reading


Source Fool.com