Golden Opportunities
In the world of investing, an investor might consider storing their money in a significant variety of assets and asset classes. Regardless, some assets and classes tend to last the test of time—they’re recognized as being some of the most viable and reliable investment products. Gold is arguably the most prominent; let's talk about the top 10 reasons to invest in gold!
A Hedge Against Uncertainty
Gold serves as a great hedge against future uncertainty in the market. Being a physical asset with intrinsic value and a limited global supply, the asset has historically acted as a hedge against economic uncertainty. This is a great asset for individuals approaching retirement to lock up some value and have comfort during uncertain times.
Extremely Simple and Liquid
Gold is a great investment vehicle due to its simplicity and liquidity in an otherwise complicated and diverse market. Unlike other modes of investment, gold has no counterparty or other risks – it is a very simple exchange of money for a physical asset. Investors should consider diversifying a bit into gold given the lack of complications and being a physical asset.
The Best Inflation Hedge
In investing, gold is viewed as the best hedge against inflation. By storing your money in the asset, you are shielding some savings from getting eaten up during periods of inflation. This is great insurance for investors!
Tangible Asset
Unlike most investment vehicles in the current market, gold is a tangible and physical asset. This is critical to the value proposition of gold, as it does not pose any risks of hacks or digital loss of your investment.
Purchasing gold is much easier than any other tangible investment asset like real estate. Pairing this with the reality that it is a physical asset makes gold a very valuable and reliable store of money.
No Specialization Required
Gold is also great because it requires no specific skills or specialization. In a market requiring a lot of trading and investment knowledge, gold is a very simple asset: buy and hold it. No specialization or experience is needed when it comes to buying gold!
Portfolio Diversification
According to expert economists, gold is typically low or negatively correlated with other major asset classes in the market, making it the best possible portfolio diversification. Most factors of volatility during a period of macro or micro-economic stress do not directly impact the value of gold, creating exceptional portfolio diversification.
Great Store of Value
Given the aforementioned stability of the asset, gold is often recognized as being a great store of value for investors looking for stability. Typically, this is a great reason for older individuals approaching retirement age to purchase the asset. Gold is a great dynamic of a portfolio that otherwise might take some risks for growth. On the contrary, gold is stable and will be a great value storage.
Rising Global Demand
Countries like India and China have been buying up gold in masses, largely for jewelry, technology and investing purposes. Given that reality, gold is an excellent investment as it is projected to be on an upward pricing trend over the coming decades. With increasing global demand and a limited global supply, gold has a high investment upside with relatively minimal downside.
Emergency Preparedness for Transactions
The reality is that during times of emergency, gold and silver will be two of the most feasible and reliable assets to transact with. Regardless of the local currency's value or market conditions, gold will always have value and will always be able to be used for barter or trade.
Gold is Money
At the end of the day, gold is money. Historically, gold has been a store of value or currency for over 3,000 years now—it lasts the test of time and will continue to do so. Major government currencies have lost purchasing power over recent decades; gold, though, has remained stable or gained purchasing power.
Gold Rush
Gold is a great investment, as the top ten reasons above demonstrate. Whether economic hardship, inflation or other uncertainties exist, gold will remain stable and reliable during any period. As an investment vehicle, gold is arguably the most stable and trustworthy, regardless of the market dynamics for the time. Consider diversifying your portfolio and reducing your current risk by storing some value in gold!