Gold has served as a form of investment for centuries, but some people may wonder if it’s outlived its usefulness in this regard. You’ve probably heard some of the standard reasons to invest in gold, like long-term investing and portfolio balancing. Here are some other reasons why gold continues to make financial sense.
Gold works as a hedge
Gold is a tangible, finite asset – unlike currency, which can be printed at will. As such, gold can be a great way to protect your finances against the value fluctuations that currency will experience over the years. Similarly, the company behind your stocks could fold, or the issuer of a bond may default – but gold carries no credit risk.
Demand is high, and rising
More than 50% of the global demand for gold is in jewelry and the ever-growing technology industry. Further, newly mined gold can only meet roughly 60% of the global demand (which is why gold recycling is so important). There is strong demand for gold that’s likely to stay stable well into the future.
Investing is easy
Gold investments are flexible and accessible. There are many ways to invest in gold, such as:
- Bullion bars and coins
- Exchange Traded Funds (ETFs)
- Gold Accounts
- Gold Mining Stocks
According to investment guru and founder of Bridgewater Associates Ray Dalio, an investment portfolio should have around 7.5% invested in gold to offset the risk of accelerated inflation. For an easy to start investing in gold, ask us about the gold bullion bars we have available for purchase.