How to protect your investment portfolio in 2021



An unlikely group of investors caught the world’s attention when they banded together, via social media platforms, to increase the value of GameStop’s shares. At the start of 2021, after months of financial volatility, this drastic change prompted a rethinking of investments. Later in the year, as the world recovers 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 need to be calculated.

While everyone is looking at crypto, I wanted to take a closer look at precious metals. There is security in variety when it comes to investments. For example, the value of gold has only increased in the past 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 to protect you from inflation or volatile markets.

Here are three practices to explore.

Diversify your portfolio with liquid assets

A diversified investment portfolio can consist of many different things. Some investors choose stocks, others choose real estate or tangible assets like precious metals. Liquid assets are worth considering in any investment portfolio as they can be easily converted to cash if needed. As they say, “money is king” and it pays to make sure that part of your investment portfolio stays liquid.

Liquid assets can be anything from cash held in a savings account, bonds, money markets, mutual funds, etc.

Ultimately, having easy access to your investments is important. Precious metals, like gold and silver, can help individuals diversify their portfolios while keeping their assets accessible. Experts from Safeguard Metals, a company specializing in protecting investments in precious metals and IRAs, say gold assets may be less affected by market changes. The investment also retains its value over time, even if the value of a dollar declines.

Protect your IRA

Most people invest with their future in mind; Whether it’s buying a home, investing in an education savings plan, or investing in stocks, bonds, etc., investments are focused on the future. For many people, that means their IRA or their individual retirement account.

Gold and Silver IRAs can help individuals maintain the diversity of their investment portfolios while providing a tangible asset to have on hand. Historically, gold and silver may be less volatile in the face of market changes and inflation and have had lasting value over time. After such a year of economic volatility, many people around the world have found their retirement accounts vulnerable to such dramatic changes. Incorporating gold and silver into these investment accounts can help provide another layer of protection.

I recommend working with experts when incorporating or moving 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 and bullion coins. An IRS-approved custodian will secure the contents of the IRA Gold for the benefit of the owner.

Start with historically prosperous markets

In times of economic uncertainty, common sense says to invest in something reliable. Stable markets are worth considering for any curious investor. While it might not give the quick return on a riskier investment, like the GameStop investors mentioned earlier, it’s worth exploring if the story is any guide.

Investing in gold or other precious metals has proven to be a stable investment. In fact, in 2008 and 2009 gold rose during the global financial crisis.

According to Safeguard Metals, given the global economic downturn, 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.


Previous 3 reasons why SKLZ is a solid long-term investment
Next How to allocate the assets of an Isa investment portfolio?