Why buy Gold? 5 top reasons for Investing in Gold
Common questions that get asked are… Why buy Gold? Is gold a good investment? and… How to invest In Gold? It’s totally reasonable and natural for an astute investor to consider if a particular asset is a good investment or not. And it’s especially true when considering gold, because it’s an inert metal and doesn’t earn any interest.
The fact that Gold does not pay interest is its greatest strength. But the reasons for owning physical gold go beyond the possibility of its price rising. Gold bullion offers distinct advantages that simply can’t be found in almost any other investment. These advantages give you real power as an investor.
Gold is one of the most coveted metals in the world, incredibly popular both as an investment and as a display of wealth and prosperity. Gold should be a part of any balanced portfolio.
Let’s begin with outlining the 5 top reasons why you need to have Gold in your investment portfolio:
1. The History
Since it’s discovery thousands and thousands of years ago, it has maintained its status as a store of value. Name a paper currency that has remained completely stable for that long. Though gold is not used as a currency today, it has proven to be superior to any currency. In fact, gold has been money longer than any currency in history. Gold has been a store of value for at least 3,000 years. Gold’s price fluctuates, but its value is timeless.
Physical gold is one of the best forms of long-term wealth protection.
2. Inflation is Good (for Gold)
Gold has traditionally been a great hedge against inflation, and it’s prise tends to rise when cost of living increases. Inflation eats away at cash and bonds, but Gold is a safe haven. If you want an asset that will rise when most other assets fall, gold is likely to do that more often than not.
In the end, economists that debate the inflation/deflation argument have still recommended from both viewpoints that gold is one of the best portfolio items to hedge against disaster.
3. China & India Love Gold
Gold is super hot in both of these fast-developing nations. Prices in India have been at all-time highs and constantly rising, and gold has become a prominent gift in China. The global demand has increased, and so have prices.
In 2019, the People’s Bank of China is continuing to increase its bullion reserves. The rise reflects the government’s “determined diversification” away from dollar assets.
4. The Supply is Shrinking
There’s only a finite amount of gold in existence. And it’s all that can ever be created. It’s only going to get more and more scarce. The “easy” gold has already been mined, so the increased cost of mining will push up gold prices.
Real gold can’t be destroyed by fire, water or even time. Unlike other commodities, gold doesn’t need maintenance. And as there’s only so much gold available, it has an inherent value that other commodities don’t have.
5. Central Banks are Building Up Their Reserves
Since 2010, central banks around the world have been buying gold as they diversify their reserves. They purchased a whopping 371 tons in 2017. Central banks buying gold in order to store value is a good sign that investors should do the same.
“Central bank buying is, of course, important to the supply/demand dynamic for the metal, but is much more important in terms of sentiment toward the metal,” says Brien Lundin, editor of Gold Newsletter. When central banks are “buying as heavily as they are, it provides cover and a rationale for other central banks to do the same.”
How To Invest In Gold
Protect your wealth and explore gold and also silver investment options with this FREE INVESTORS KIT. Also included is an IRA and 401(k) Rollover Guide so you can learn how to transition your existing accounts into precious metals.
To learn more and get your free kit, visit Regal Assets and they’ll send it out immediately.
Buying gold is relatively straightforward. Gold is gold right? Wrong! In today’s investment market, there are many different types of gold that you can purchase, which can impact on your overall investment strategy. If have any questions or you’d like to chat with an expert today…
Call now on +1 855 338 1588.