Word on the street is that investing in gold and silver
A lot of investors in recent times look to be tilting towards gold investments. Word on the street is that investing in GOLD AND SILVER is a much safer investment option. This is as compared to other types like stocks, bonds, or even real estate. You can invest in physical gold like jewelry, coins, and bars, or gold exchange-traded funds (ETFs).
We have already established that there is a lot of attraction to gold investments. The question becomes, why the scramble? Why are investors opting for it against some other types of assets? In this article, we will attempt to answer the above questions. We will do this in the form of looking at the key benefits of investing in gold and silver. What then are these benefits?
Gold maintains long term value
Gold has maintained stability and consistency in value and price over the years. Paper currency or coins tend to depreciate from time to time. Gold, on the contrary, has consistently maintained its value globally. This makes it a safe investment to make. A lot of investors believe their money is safe there, hence their confidence in investing in it.
The value of gold is the same everywhere
It doesn’t matter your country or location; you can trade gold anywhere and anytime. There is no such thing as “African gold” or “American gold” gold is gold and has the same value everywhere. You can do business with anyone regardless of their geographical location. It is a globally accepted asset, which makes it a hot cake!
Gold is an excellent hedge against inflation
Fiat currency usually loses its purchasing power/value during high inflation periods. However, gold rises along with inflation. It maintains its great value around these periods. When this happens, investing in gold and silver becomes very lucrative and beneficial.
There is a high demand for gold
Gold consuming nations like India have a massive demand for gold. In some of these countries, gold is almost part of the culture. At certain seasons, the global demand for gold becomes very outrageous.
Similarly, a lot of investors see it as an excellent place to invest because of its history of stability. This has further increased its demand globally.
Gold is a perfect option for diversification
When making investments, it’s important to find assets that are not closely correlated to one another. This helps to reduce the risk for you as an investor. Research shows that gold seems to have a negative correlation to a lot of paper investments. If you have investments in stocks and bonds, gold will be a perfect option for you to diversify.
Gold trading is convenient (Liquidity)
Gold can take many portable forms, which makes it easy to be moved around. Its liquidity also makes it possible for you to easily sell them, unlike, for instance, stock in your brokerage account. It takes about three working days to conclude such transactions. Its portability also means that you can store them much more conveniently.
Gold is tangible and durable
Not only can it not be destroyed by water or fire, but gold also doesn’t need any special maintenance. Being a real asset, you don’t have to worry about hacking or identity theft. So many paper investments are susceptible to this, but not gold.
In a digitalized world like ours, it is wise to have some physical assets. This you could fall back on, in case of an internet hitch or glitch. Additionally, physical gold is one of the few anonymous investments you can make. You could have gold bars worth millions of dollars without anyone knowing about them.
Investing in gold and silver from any angle you look at it seems like the right fit. For the thousands of years that it has existed, the story has remained the same. It has maintained its value, served as a good diversification option, and also as a hedge against inflation. All in all, gold investments look like the way to go.