Gold has been a stable currency for centuries. Investors have turned to gold assets when faced with economic downturns. It provides high level of financial safety and security. Gold investing offers various benefits for investors and that is why it remains high in demand all across the world. There are many reasons why gold will remain one of the top investment options in future.
Something to Hold
People always feel secure when the money they own is held in a secure form. Gold is a tangible asset that gives complete peace of mind. Some shares and stocks completely lose value in times of financial downturns. This has never been the case with the gold. It has always retained its high value. In fact, its value goes up when the financial market goes down or the top currencies lose their value.
Diversified Investment Portfolio
All investors are advised not to put all their eggs in one basket. Financial experts advise investors to invest in a variety of investment options. Gold investing helps keep a diversified investment portfolio. It protects the investor in times when the financial markets go down. Gold has a good record of being less volatile asset. It is a suitable investment for all types of investors.
No Commission to Pay While Buying and Selling
Investors have to pay commission when buying or selling a share. It dilutes the value of the share. A small part of their investment is wasted in the commission charges. That is not the case with the gold. It can be sold at the prevailing market rate without paying any commission to anyone if it is in the standard grade bullion form.
The number of gold mining sites around the world has not increased. There are no new discoveries of gold mines. There is no other way to manufacture gold. With increasing demand and limited supply, the value of gold will remain high in future.
Strong Demand from Jewelry and Electronic Sectors
These two sectors will require high amount of gold in future. The demand for it will remain strong from developing countries where the living standards of more and more people are improving. As the number of consumers around the world increases, the demand for gold will also increase in the same proportion. Gold is used extensively in the electronics sector. Electronic devices have become affordable for most people in all countries. Devices like smartphone are quite common now. The electronics sector will need more gold and not less.
India and China
The demand for gold has always remained very high from these two countries. Gold jewelry as an investment remains a favorite with Indians. Most of the jewelries in individual possession are passed to the next generation and rarely converted into cash or a different asset. On the other hand, new consumers keep buying gold jewelries. Most research shows that these two countries will not lose their appetite for gold for decades to come.
Easy to Convert into Cash
Gold is a liquid asset. It can be sold anywhere in the world at any time. The high liquidity value gives it a unique advantage over other assets. In case of shares, investors have to wait for the prices to go up. If the prices of shares they hold are down then they have to sell at a loss. To avoid such a loss, they wait for months and even years. Unfortunately, there is no guarantee that the share price of a particular company will go up. The price could drop further. There is unpredictability with these investment options. There is no such problem with the gold. It has remained a stable asset. It can be converted into cash easily at any time.
Only Short Term Drop in Value
The value of gold drops only in the short terms. Even then the fluctuation in the price is minimal. In the long term, the value of gold always goes up. In fact, on a long term basis, it outperforms most other investments. There is no way to predict if a particular company’s share will go up or down. It is a hit or miss with shares and stocks. Investors who are unfortunate to have invested in the losing shares rue their decision later but there is nothing that can be done. Every year investors around the world lose investments worth millions of dollars in financial markets. When compared to overall share portfolio, gold investing is a stable investment option that gives good return in long term. It should be held at least for a few years to benefit from its investment potential.
All Countries Have Their Reserves in Gold
This is the strongest statement on the value of gold. Governments are run by highly qualified and smart people. If they believed other investment options are better then they would have never advised their government to invest in gold. All countries retain their main reserve in gold.
It is because of high liquidity, safety and security that gold investing remains a favorite investment option. It is time now to invest in gold and protect the financial future.