Gold tends to appear in the news in times of uncertainty, and it’s not by accident. Gold has always been seen as a haven against inflation, and gold prices usually go up in times of war and disruption in global markets. If you are looking for safe investments to make at the moment, gold should be near the top of your list as it has nearly all the attributes you should be looking for in an investment at this point in time. Let’s take a look at some of the reasons why gold is such a good investment.
It’s Highly Liquid
When people think of investing in gold, a lot of them imagine gold bars and ingots. But there are so many other ways to invest in gold. Gold trading is a common option, and the gold markets are highly liquid, making them a good choice for speculation and long-term investments. You can also invest in gold funds, gold ETFs, or gold futures, just to name a few options.
So, if you assume that you will be stuck with bars of gold you won’t be able to trade off, think again. And, even if you wanted to hold bullion, you wouldn’t have too many issues exchanging it anywhere because of how recognisable it is.
It’s an Actual Commodity
Another thing that people assume about gold is that it is a purely speculative asset whose value is entirely dictated by supply and demand. But the truth is that gold is a commodity first and is used in all sorts of applications. Gold can be found in virtually every electronic device on this planet because of its high conductivity and resistance to corrosion. This is why there will always be demand for gold and why it will always have an intrinsic value.
Not only is gold a good refuge against inflation, but its price will actually go up during those times. This is partly because gold is priced in US dollars, and as the price of everything goes up, so will the price of gold. There’s also an increase in demand during hard times which further pushes the price of gold up. So, if you are worried about inflation now or in the future, you should definitely have some gold in your portfolio.
Another reason why investing in gold is a good idea in times like the ones we’re living in right now is that it’s much more stable than the average currency. This makes gold a good protection against a sudden drop in the pound and any currency you might hold.
Gold is also much more tightly controlled than fiat currency, which helps keep its price stable. This is one of the reasons why gold is seen as one of the best stores of value there is.
Most of the gold being traded on the market comes from central bank vaults, and this supply is limited. Goal mining has also been in decline since the early 2000s, which prevents gold from flooding the market and causing its price to plunge or fluctuate wildly.
These are only some of the reasons why gold makes so much sense as an investment right now. If you haven’t considered it or have been for a while but are still hesitant, look into it more closely and don’t hesitate to ask for outside help if needed.