Pros and cons of stacking up precious metals?

Precious metals can hedge against stock market downturn

Hello! Here are some pros and cons.

Pros

1. During economic downturns, the value of gold will usually rise, and acts as a hedge against the stock market. People usually buy gold to protect their money and not have their purchasing power erode.

2. Gold is also an extremely liquid asset that can be bought and sold internationally.

Cons

1. Low rate of return as there as slight changes in price over time

2. Gold prices usually appreciate during times when the paper currency decreases in value