There is no denying that gold is accepted throughout the world as a symbol of wealth and status. Some of the first coins that contained gold were spotted as early as 800 B.C. In the history of mankind, people have been keeping gold for a variety of reasons. It is metal that you can always rely on when all other currencies have failed. Here are some of the reasons why you should consider buying gold.
History of Holding Its Value
Throughout history, gold has been consistent in holding its value. World economies have collapsed and currencies devalued but gold has been consistent despite all that. Gold has been used as a means of wealth preservation and can easily be passed from one generation to another. Gold unlike other metals can’t corrode. It can also be melted so that it is transformed into coins and other ornaments. This makes it easy to work with.
Weakness of Currency
The U.S dollar has to be the most popular currency in the world. The rates are subject to market situations and it can quickly depreciate when there is turbulence. The pandemic that has rocked the world in 2020 is just an example of something that can take a wrong turn in just a few weeks. The price of gold has nearly tripled since 1998 and there are no signs of it going down. This is despite the global recession in 2008 which affected a lot of businesses and industries.
Inflation Hedge
Gold just like real estate can be used as a hedge against inflation. There is a high likelihood that there will be an increase in the price of gold. You know your investment is safe even if there is inflation and the markets are not doing particularly well. You can always decide to sell if you’re tight with finances. There are companies like Gold 2 Green that will buy your gold in whatever form.
Demand
There will always be a demand for gold regardless of the economic environment. There isn’t a lot of gold being mined and that is why the supply is not sufficient to meet the demand. In such scenarios, the prices are likely to go up because of the law of economics. There are some countries like India where gold is part of their culture. It is used for paying dowry and is often seen as highly valuable. It will be hard for gold to lose value when a whole culture is dependent on it.
Diversify Portfolio
If you’re a good investor, you’ll not want to put all your eggs in one basket. Gold provides the perfect opportunity to diversify your investment. In order to truly diversify, you’ll need to find investments that are not related in any way. This limits the chances of everything going down the drain should there be uncertainties in the market. Gold does well when other investments are going under.
Tangible Asset
There are people that are afraid of investing their money in forex trading because of the lack of tangibility. With gold, you can decide to buy the physical form and keep it in a safe or even in your home. It provides an assurance that your investment is safe. It is impossible to destroy real gold with any element. It doesn’t matter if it is fire, water, or wind, it will still stay true to its real nature.
Privacy and Confidentiality
There are not a lot of physical assets that can be said to be private and confidential. You don’t have to go announcing to everyone that you have gold. You can decide to keep it to yourself so that there is security guaranteed at all times. Banks offer deposits where you can keep such confidential stuff. You’ll never have to worry about losing your gold.
Protection
You don’t have to be a rocket scientist to know that the government can overreach. They will want to know your bank accounts and potentially freeze them when it is not even legal to do so in the first place. When the government is looking for revenue, they’d want to be aggressive with the process. With gold, they don’t have the same access as your bank accounts. You can turn the gold into liquid cash at any time and not have to worry about who is on your back. You can even carry it to another country or continent and the value will still be the same. Investing in gold should be a no brainer if you’re looking to diversify.
History of Holding Its Value
Throughout history, gold has been consistent in holding its value. World economies have collapsed and currencies devalued but gold has been consistent despite all that. Gold has been used as a means of wealth preservation and can easily be passed from one generation to another. Gold unlike other metals can’t corrode. It can also be melted so that it is transformed into coins and other ornaments. This makes it easy to work with.
Weakness of Currency
The U.S dollar has to be the most popular currency in the world. The rates are subject to market situations and it can quickly depreciate when there is turbulence. The pandemic that has rocked the world in 2020 is just an example of something that can take a wrong turn in just a few weeks. The price of gold has nearly tripled since 1998 and there are no signs of it going down. This is despite the global recession in 2008 which affected a lot of businesses and industries.
Inflation Hedge
Gold just like real estate can be used as a hedge against inflation. There is a high likelihood that there will be an increase in the price of gold. You know your investment is safe even if there is inflation and the markets are not doing particularly well. You can always decide to sell if you’re tight with finances. There are companies like Gold 2 Green that will buy your gold in whatever form.
Demand
There will always be a demand for gold regardless of the economic environment. There isn’t a lot of gold being mined and that is why the supply is not sufficient to meet the demand. In such scenarios, the prices are likely to go up because of the law of economics. There are some countries like India where gold is part of their culture. It is used for paying dowry and is often seen as highly valuable. It will be hard for gold to lose value when a whole culture is dependent on it.
Diversify Portfolio
If you’re a good investor, you’ll not want to put all your eggs in one basket. Gold provides the perfect opportunity to diversify your investment. In order to truly diversify, you’ll need to find investments that are not related in any way. This limits the chances of everything going down the drain should there be uncertainties in the market. Gold does well when other investments are going under.
Tangible Asset
There are people that are afraid of investing their money in forex trading because of the lack of tangibility. With gold, you can decide to buy the physical form and keep it in a safe or even in your home. It provides an assurance that your investment is safe. It is impossible to destroy real gold with any element. It doesn’t matter if it is fire, water, or wind, it will still stay true to its real nature.
Privacy and Confidentiality
There are not a lot of physical assets that can be said to be private and confidential. You don’t have to go announcing to everyone that you have gold. You can decide to keep it to yourself so that there is security guaranteed at all times. Banks offer deposits where you can keep such confidential stuff. You’ll never have to worry about losing your gold.
Protection
You don’t have to be a rocket scientist to know that the government can overreach. They will want to know your bank accounts and potentially freeze them when it is not even legal to do so in the first place. When the government is looking for revenue, they’d want to be aggressive with the process. With gold, they don’t have the same access as your bank accounts. You can turn the gold into liquid cash at any time and not have to worry about who is on your back. You can even carry it to another country or continent and the value will still be the same. Investing in gold should be a no brainer if you’re looking to diversify.
