Top 9 Reasons to Invest in Gold

Reasons that make Gold a good investment

Here’s a list of reasons why gold still shines as an investment:

1. Gold has maintained its value : Throughout the years, gold has held on to its value and people look at it as a way to pass on and preserve wealth from one generation to another.
2. Holds a good price when the reserve currency loses its value : Gold prices rise when the US dollars or the reserve currency falls. Gold has been termed as the safe haven for this reason. People start flocking to the gold’s security at the time of fall in the value of reserve currency.
3. Gold Requires No Specialized Knowledge : No special skills, training or equipment are needed to buy or recognize gold bullion. Buying gold bullion is relatively straightforward. If you’re not sure what to buy, start with this easy guide.
4. Hedge against inflation : Gold has been an excellent hedge against inflation as the prices rise when the cost of living increases.
5. Gold’s purchasing power Increase during deflation : Prices decrease and business activity slows down at times of deflation and the economy gets burdened with excessive debt. The relative purchasing power of the gold soars while other prices drop.
6. Crisis commodity at times of geopolitical uncertainty : When the world tension rises, people turn to relative safety. When the confidence in governments is low, the gold prices are often seen to be rising. The European Union crisis gave way to the major gold price movements this year.
7. There is a supply constraint : Most of the gold supply since the 1990 has come from the sale of gold bullion from the central bank’s vaults. But there has been decline in the supply from the central bank and the gold mining output has been declining as well. It will take another 5-10 years to bring a new mine into production. Reduction in the supply of gold increases the prices of gold.
8. Increase in demand : Increased wealth of the emerging economies boosted the demand for gold. In most countries, it is intertwined into its culture. Indians buy a lot of gold especially during the wedding season and China buys gold bars as they are a traditional form of saving. The gold demand has been growing among the investors as well.
9. Used for portfolio diversification : Key to diversification is to invest in products that are not closely correlated to each other. Gold happens to have a negative correlation with stock and other financial instruments. Hence, it is a perfect choice to diversify your portfolio and to ensure that you are reducing the overall volatility and risk.

Short Summary Of 10 Advantages Of Gold Investment?

1	Gold is money	Physical gold is one of the best forms of long-term wealth protection. It is ideal for your heirs since it will outlast any currency they may use in the future.
2	Gold is a tangible asset	Physical gold is not subject to the risks that come with paper assets. It can’t be hacked or erased.
3	Gold has no counterparty risk	Physical gold cannot go bankrupt or broke. Gold bullion will never default on promises or obligations.
4	Gold can be private and confidential	If you want a private or confidential form of wealth, gold is one of few assets that can offer anonymity.
5	Gold is liquid and portable	Gold is easily convertible to cash, and can go with you anywhere.
6	Easy to store, low carrying costs	Gold storage is low maintenance, low-cost, and requires little space.
7	Gold requires no specialized knowledge	No special skills or expertise is needed to buy physical gold.
8	Gold can protect against government intrusion	International gold storage is simple to implement and can provide both financial flexibility and investment options outside your home country.
9	Gold hedges the stock market	If you want an asset that will rise when most other assets fall, gold is likely to do that more often than not. The more common stocks you own, the more gold you need.
10	Gold protects against crisis	In a world of elevated risks on multiple fronts, gold offers lower risk, greater safety, and bigger upside than any other investment.

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