Wealth protection is not a new concept introduced in 2022. In fact, people looked for ways to keep the value of their assets a long time ago. Even when money, as we know it nowadays, hadn’t been invented, salt was the most valuable tangible asset.
But, coming back to the 21st century, people have become more and more interested in finding different wealth protection strategies. And this makes total sense. Both local and external factors (such as pandemics and wars) keep threatening currencies and markets. People seem to feel their salaries are not worth the same as in previous years. Consequently, they try to decrease the impact of these uncontrollable situations on their pockets.
At Buysilvergold, we understand this ongoing concern and take the protection of wealth very seriously. In this article, we will tackle different common questions concerning what we mean by wealth protection strategies. Additionally, we’ll show you that this concept is not something only big brand businesses are capable of. You can take it to your own small business or even your household.
What Is Wealth Protection?
The first thing that comes to mind when talking about wealth protection may be “investments”. And this is not totally wrong, yet not entirely correct either. There are several misconceptions about protecting one’s wealth that may confuse you. Therefore, you end up putting your money on something that may sound interesting enough, but wouldn’t actually do the trick.
According to an article by Investopedia, wealth protection refers to strategies used to guard one’s wealth against taxation, seizure, or other losses. And this seems to be a very accurate definition. However, the different mentioned threats to your wealth can be divided into different groups:
- Unavoidable threats against your wealth are those that you can’t control and are destined to pay. Here, we can include taxation, debts and robbery, among others. These are the ones we must always consider, and wealth protection strategies will not make them disappear but may decrease their negative impact.
- Avoidable threats may also be out of your control, but there’s something you can do to avoid them. Avoidable threats include factors like inflation, warfare effects and global currency collapse.
As you can see from these definitions, wealth protection strategies can work toward either decreasing or avoiding these threats. Of course, a crucial element that describes the basics of any type of wealth protection plan is that they don’t include any illegal or fraudulent operations. Thus, you can enjoy the benefits of keeping your assets safe within the legal boundaries despite the place where you live.
Benefits of Protecting Your Wealth
You may now be wondering, “why would I need to protect my wealth if my salary tends to increase accordingly to taxes, inflation, and similar external factors with financial impact?” Well, common as it may be, this question doesn’t fully address the benefits of protecting your wealth.
Piggybank money tends to lose value as it sits in your vault, under the mattress -supposedly- safe from being lost. Numerous external factors tend to devaluate all currencies as prices, taxes, and living costs increase. With an effective wealth protection strategy, you will be keeping those assets free from devaluating.
The most effective ways to protect your wealth ensure you can use them anytime you need them. Call it an emergency, an unexpected trip abroad, or something you were expecting to be on sale. Liquidity means how easy it is to turn an asset into your local currency and have it at your disposal.
These characteristics are the main differences between ineffective wealth protection plans and effective ones. You keep your money’s value, but it’s still available for you to use in case of need. Thus, you can go through times of uncertainty without worrying about losing your wealth.
Most Common Threats to Your Wealth
At the beginning of this article, we divided threats into two groups. However, some hazards to your wealth are much more common than others. Here are some examples of what you should consider when evaluating different wealth protection strategies.
Inflation is one of the most common elements that tend to decrease the value of our wealth. Although at different scales, it is present in every country around the globe. During the last few months, inflation has been a concern in many regions where it usually isn’t.
Take a look at these stats:
- In the US, the annual inflation rate accelerated to 8.5% in 2022. This is the highest since December of 1981 (7.9%).
- Up to March of 2022, the UK has reflected an annual inflation rate of 6.2%.
- The Euro area annual inflation in March 2022 was 7.4%, while forecasts say it may go to 7.5% in April.
Inflation is not something we can stop from happening. However, an effective wealth protection strategy will decrease its impact on our pockets. We can also look for assets that are different from regular currencies or that have a value that’s not led by these rates to protect our money during inflation.
Global Currency Collapse
Global currency collapses, also known as “currency crises”, are a drastic devaluation of a nation’s currency due to a sudden loss of faith or trust in that nation’s economic decisions. When a government changes its political insight, this causes inevitable turmoil from the external point of view. In other words, it modifies how other countries see those new policies, making them withdraw investments or stop trading with them.
This turmoil instils exchange rate instability, causing local currency value to drop. And, while that nation still imports goods, they become more expensive to society. Many people tend to save money in different, more solid currencies to protect their wealth against a potential global currency collapse. However, nothing ensures the chosen foreign currency will not go through the same process, making their wealth suddenly decrease.
An effective wealth protection strategy against global currency collapse would include an asset that’s not either local or foreign currency. In this way, assets can be exchanged into the currency of preference if needed. This strategy takes us back again to the importance of liquidity when looking for an effective way to protect our wealth.
Times of warfare also bring economic instability, and this is due to two different reasons. On the one hand, the nations involved in war tend to focus their economic efforts on things to help them fight the opposing force. Labour forces tend to decrease, as a significant part of the population is called to arms to collaborate in some aspect with the military.
On the other hand, external policies change during warfare times. Either due to political differences (i.e., currency crisis) or because they’re also participating in that same affair and need to protect their local assets as well.
During war times, local currencies tend to drop, and affected people look for different assets to protect their wealth. Once again, the best wealth protection strategy during warfare is not tied to any currency but has a market of its own. In this way, you can keep your wealth safe from foreign issues, such as war.
Other worldwide factors that are not directly related to politics or warfare can also negatively impact your assets. Take, for example, the 2020 COVID-19 pandemic. During the strict lockdown, countries had to focus their financial efforts on special elements, such as hospitals, medical goods, research and other healthcare-related affairs. This situation was not led by war, foreign policies or similar. Yet, measures hugely affected the economy, and some countries are still recovering from it.
Wealth Protection Strategies with Silver
Let’s now dive into the most effective ways to protect your wealth.
We think precious metals are the best asset to protect your wealth against uncertain times. Inflation rates, warfare, and the risk of falling into a global currency collapse may put your savings under the scope.
While saving or retirement plans vary according to local policies or economic situations, precious metals have a global market led by supply and demand, increasing prices when people buy. And silver’s industrial uses are a guarantee of constant need.
Another great characteristic of silver is that you can save as much as you want. This means that you don’t need to be a big business to invest in it. You can buy as much as you want and even make a profit throughout time. If you’d like to learn more about investing in silver, check our comprehensive guide. Meanwhile, here are two effective wealth protection strategies you can use with precious metals.
Quicksilver: Low Prices and Business Opportunity
Quicksilver offers a variety of opportunities to stack valuable silver and gold coins to protect your wealth. Among their various benefits, Quicksilver includes membership plans, preferred customer plans and even a business opportunity. Thus, You can generate a passive income while receiving your monthly order of coins to stack or resell.
Their auto-wealth program includes different plans for you to choose the one that best adjusts to your goals. This program is great for beginners who are looking for different ways to protect family or small businesses’ wealth while still making a passive profit. To learn more about Quicksilver opportunities, membership plans and charity missions, you can check our Quicksilver Guide.
7k Metals: Wealth Protection through Valuable Items
If you’re looking for a higher-end wealth protection strategy, then you should try 7k Metals opportunities. While their online store also has competitive prices for you to stack silver and gold coins, all of their products are NGC certified, which adds a lot more value to them. These products are the perfect way to protect your wealth in collectable items that will not lose their value.
In addition to their sophisticated products, 7k Metals offers different membership plans to generate a passive income. In this way, you can win the battle against any of the threats mentioned above to your wealth. By becoming a member, you will gain access to exclusive items and coin drops from their own collections.
Check our comprehensive guide on 7k Metals opportunities to learn more about them!
Wealth protection is something everyone should take seriously. Uncertain times of ongoing war, financial crises and worldwide factors decrease the value of local currencies. It doesn’t matter if you own a small business or you’re looking for opportunities to protect your family’s wealth against uncertainty. There are ways to adjust to your needs and goals.
At Buysilvergold, we’re proud to say that precious metals have been the best way to protect your wealth throughout time. As a plus, we’d be happy to provide guidance on the best ways to invest in silver or gold. Set up your own online business to generate a passive income while you keep your wealth safe.