People often ask, why should they invest in Gold? So I have 7 reasons why everyone looking to invest should own some Gold in their portfolio.
1. Long Term Investment
Gold has always been seen as 1 of the best long term investments, that has a track record spanning 5000 years. Over those years Gold has always maintained its buying power. No other investment has come close.
2. Global Currency
Gold is accepted as currency throughout the world and can be referred as Global currency. The price or value of Gold is set by itself or by man. It is valued on its own worth. All other currencies value is primarily set by central banks or governments.
3. Demand for Gold
Global demand for Gold is increasing annually. As a result the price of Gold is continuing to rise. This demand for Gold is coming from emerging markets with India and China leading the way. This demand is set to continue as emerging market economies grow.
4. Hedge against Inflation
Gold has been described or referred to as a Hedge against inflation. Over time the buying power of all paper currency has decreased with inflation, while Gold has maintained its value with inflation. Investors tend to buy more Gold in times when paper currency is under threat of value.
5. Crisis Commodity
Global uncertainty. The world can present us with many challenges and adverse obstacles such as wars and civil and regional unrest. During these times investment in Gold increases as it is seen as a safe haven investment. Gold has been described as a Crisis Commodity.
6. Portfolio diversification
Most investment portfolios should contain a percentage of Gold. A figure of 10% asset holding of Gold is often mooted along with other asset classes. A good investment portfolio will always be diversified.
Gold is often seen as recession proof. The demand for Gold increases during economic downturns. Over the years this has shown in the price of Gold increasing globally.
Simply put, investing in Gold in either Gold Bullion, Gold Bullion Bars or Gold Coinsoffers investors, Returns, Diversification, Liquidity and Portfolio Performance.
I am sure that over time I will add to this page many times, but I believe Gold is a good investment and we have history to confirm that.