Top 5 Reasons to Invest in Gold

​It’s prudent for any investor to think twice if a particular asset they are looking to invest in is beneficial or not. And that is absolutely true for gold too!

For centuries, gold has been respected for its great value and rich history, which has been interwoven into cultures. Gold has always maintained its purchasing power and has been a very safe investment. Buying Gold online can play a significant role in an individual’s investment portfolio.

Throughout history, gold has been valued as a special commodity and below are five practical reasons why you need to own gold.

Holds the value

Unlike coins and paper currency, gold has always maintained its value throughout. People pass on gold from one generation to the next to preserve their wealth and heritage. Gold has unique properties, it does not corrode, can be melted and can be stamped as coin, making it a great choice for preserving wealth.

Inflation Hedge

As the price of gold tends to increase when cost of living increases, it has been an outstanding hedge against inflation. In the last 5 decades, experts and investors have witnessed the gold price soar high during high-inflation periods. Gold is seen as a good store of value so everyone is encouraged to buy the precious yellow metal when they believe that their local currency’s value is going down.

Diversification

Gold is alleged to have an inverse correlation with stocks and other financial modes. The 1970’s was excellent for gold, but dreadful for stocks. The 80’s and 90’s were great for stocks, but terrible for gold, and in 2008, investors migrated to gold as stocks witnessed a substantial drop.

Investors need to combine gold and stocks in their investment portfolio to mitigate the overall risk.

Never goes bankrupt

Gold is the only asset in the world that is not some other entity’s liability. Even if a major crisis hits, gold will always be the last man standing, making it a powerful tool to have in your portfolio. Not in the last 3000+ years has gold gone to zero value. You can sell it anytime for a great sum when you are in need of currency.

Tangible Asset

Gold is a tangible asset (one of the very few assets in this category), which creates a safe perception among investors. Among the other tangible assets like real estate, purchasing gold is a lot easier. Also, gold is free from hacking and concerns that digital assets are prone to. However, it does have safety concerns and other risks.

Among the above, there are many more reasons to invest in gold; buying gold does not require any specialized knowledge, can be your saviour during financial distress and it is highly liquid. These qualities of gold makes it one of the best, if not the best coveted metals in the world.  

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