The arguments for holding a percentage of your wealth in gold, silver or platinum bullion are well understood. Many savvy, wealthy investors will have a percentage of their wealth in these precious metals.
They hold it for the long haul, progressively adding to it over time. These individuals are less interested in trading bullion as the price goes up or down. They use it as a long-term hedge against inflation. Through history, gold has proved itself as one of the best ways to protect and preserve your wealth over long periods of time.
Bullion also provides the investor with an asset that runs counter-cyclical to many other investment categories. Gold and silver tends to weather the turbulence in the stock market. Many investors in the stock market also hold precious metals as it provides balance to their investment portfolio, and often viewed as a safe investment in times of a weak market.
Gold has also proven throughout history to be the currency that is globally tradable when financial systems fail. Over the years, we've seen how governments respond when plagued with excessive debt.
So, as various countries financial systems are coming under pressure, not only are more investors buying bullion, but many are now storing their bullion in safety deposit boxes in privately owned vaults such as New Zealand Vault.