Commonly seen as a great store of wealth, this precious metal is also known as a reliable safe-haven asset. With a rich history amongst almost all global cultures, gold remains a highly popular investment. Although it has multiple uses, its primary function is typically to hedge against inflation in an often volatile futures market, as well as to diversify existing Precious Metals Investment Retirement Accounts. Gold has been one of the most valuable precious metals throughout human history, used by elites as a symbol of wealth for centuries due to its rarity and its ability to hold its worth for a long time. Historically, it has been the most common way to pass on one’s wealth as an inheritance from one generation to the next. Gold is considered a worthy investment, with coins and bars available for purchase in various sizes, ranging from one gram to a whopping 400 ounces. Being the most reliable investment commodity available, gold has proven to be a perfect way to diversify your investment portfolio and an excellent safeguard against volatile currency.
- GOLD RETAINS ITS VALUE - Unlike common coins, paper currencies, or other types of assets, gold is known for maintaining its value over centuries. The unique physical properties of gold are also highly esteemed. The precious metal is known for its resistance to corrosion and the fact that it can be melted. This allows it to be worked with very quickly or stamped as a coin.
- DIFFERENT WAYS TO HOLD GOLD - It is usually a good idea to hold some physical gold in the form of coins or bars. However, there are also other convenient options available for anyone looking to invest in gold. One way to profit from gold is to invest in gold mining shares. This allows you to reap the benefits of gold price increases without the hassle of storing the physical metal. During gold bull markets, mining shares often outpace the price of gold.
- HEDGE AGAINST INFLATION - Gold has a well-earned reputation for making a great hedge against the inflation that can eat away at the value of paper assets. No matter what happens to gold, it will retain the value that it took to mine and produce it, while paper assets can theoretically go to zero.
- POLITICAL INSTABILITY - Markets hate uncertainty. Gold is historically known for retaining its value regardless of external political conditions. Whenever there is a political crisis, gold tends to take off. People love the safety that investing in gold delivers.
- CONSTRAINTS ON SUPPLY - Much of the available gold supply is the result of global central banks selling gold bullion. Generally, when the amount of gold decreases, the price of gold increased.
- HIGHER DEMAND - Emerging markets, like highly populated India and China, have increased the demand for gold. Gold typically has a more prominent place in the culture of these types of countries. Gold demand in China has been steady among those who view gold bars as a traditional type of savings. In India, gold is highly valued during the wedding season, increasing the global demand for gold.
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