Gold has consistently been recognized as a valuable asset. Its history began in 2000 B.C., but it wasn’t until 560 B.C. when Egyptians started to make jewelry from this precious metal. Today, most gold consumed globally is used to make earrings, necklaces, bracelets, and more. A lot of individuals invest in gold because it maintains its value over time. It has also evolved to become a status symbol of wealth around the globe. With its history as a store of good value, here are other reasons you should invest in gold.
Key Takeaways
The historical attraction of gold
Why it is a liquid asset
Reasons why it should form part of your investments
1. Easy to buy and sell
It is true that you can opt to buy physical gold from a random jewelry shop in a mall. However, it is best to purchase it from a reliable provider of gold bars and coins who can provide a certification of authenticity on their precious metal products. One of the biggest advantages of buying from a trusted source is that you will have guaranteed receipts for future reference, which would be important if you plan on selling the gold you have purchased from a store. Contact your sources and check the price for the day. If you think the rate is better than on the day you last checked it, go ahead and buy from them. You do not need to worry about liquidating your precious metal as it is always in demand.
2. Be able to get a loan with gold
Bid farewell to your financial worries with a gold loan. This is a secure loan from an institution like a bank that allows you to get capital against the gold you own. For a simpler context, it is similar to getting a mortgage loan from a bank where your house is used as the mortgage.
It would be best for you to always be prepared to handle emergencies in the future. If you have gold investments, you can easily depend on them as they can be easily liquidated. But it is a good thing that selling your gold is not the only route you can take these days given that financial institutions offer gold loans.
3. To invest in gold = price stability
An added advantage of investing in gold is its price stability. Even during a crisis, its value may go down but only by a small margin. In fact, when there is inflation in the market, investors turn to gold because its price goes up in no time.
Unlike with bonds, mutual funds, and stocks, there is no need for you to worry about a certain corporation’s performance when you invest in gold. While the state of the economy can affect a gold’s price, it will not really affect the precious metal’s value. The opposite actually happens when there’s economic uncertainty. That is why people tend to invest their money in gold, which for them is a better option.
4. Assets for the next generation
Who would have thought that gold could be passed on from generation to generation? One way to do this is by gifting your loved ones with gold ornaments such as necklaces, earrings, or bracelets. You can safeguard your money for the future by investing in gold jewelry.
As gold holds its value, it will not lose its worth even after decades have passed. After a few years, your children can exchange their jewelry for new pieces as long as the market value is excellent.
5. To invest in gold means less maintenance
Gold does not require much maintenance, which is why a lot of people choose it for their investment. Investing in gold does not require maintenance as long as you keep it in a secure place.
If you will compare it to owning real estate as an investment, gold is less of a hassle to deal with. It’s because you still need to maintain the house from time to time, but when it comes to the precious metal, you just have to keep it in a safe or a vault, and you are all set.
6. Diversify your portfolio
If you have already invested in stocks and bonds, adding gold to the list can diversify your stock portfolio. Having a wide variety of investments will decrease your risk in a volatile and unpredictable market.
Investing in gold apart from other assets would be a huge help during inflation. There’s no need for you to check the market as it rises or fluctuates since gold can balance it all out.
Conclusion
Many individuals dive into buying and selling gold because of the excellent income that the endeavor may provide. Aside from that, gold loans you can take advantage of should an emergency arise are now available in some financial institutions. Gold not only maintains its price but increases in value over time.
The bottom line is there are many reasons you should invest in gold. In fact, investors have been attracted by the shine of this precious metal for over a hundred years. So if you are after financial security, consider the benefits gold can provide and determine if it is an asset that would allow you to reach your goals.
Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.
Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.
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It is true that you can opt to buy physical gold from a random jewelry shop in a mall. However, it is best to purchase it from a reliable provider of gold bars and coins who can provide a certification of authenticity on their precious metal products. One of the biggest advantages of buying from a trusted source is that you will have guaranteed receipts for future reference, which would be important if you plan on selling the gold you have purchased from a store. Contact your sources and check the price for the day. If you think the rate is better than on the day you last checked it, go ahead and buy from them. You do not need to worry about liquidating your precious metal as it is always in demand.
