Investing in gold can be in various forms such as gold stocks, gold exchange-traded funds (ETFs), and buying physical gold. Most new investors are perplexed by some questions regarding investing in gold. They ask whether investing in gold is still a worthwhile investment. Some go like, “Why should I bother investing in the gold?” Compared to the old days, today’s gold investors have numerous ways in which they can invest in this precious metal. Gold coins, Gold futures, Gold ETFs, Gold Bullion, Gold Jewelry, Gold mutual funds, and Gold futures are all modern forms of investing in gold. Then comes the next most important question, does investing in gold really matter? Stay with me as offer answers to this query.
Gold is considered a safe investment
With political and economic tensions increasing all over the world, most investors consider investing in gold as a safe haven for their money. Over the years, in times of political and economic uncertainties, only investors who invested in gold were able to protect their wealth. They were able to circumvent the political coups, collapsing empires and the collapse of major currencies. Today, amid political and economic disputes, investors will rush to invest in gold to protect what their hard earned money.
Gold is a growth asset
You can consider gold as a dividend–paying growth asset. The price of gold regulates the rise and fall of gold stocks. Some gold mining companies remain profitable even when gold prices fall. A small increase in the gold spot price can have a significant impact on gold stocks. If you choose to invest in gold stocks, you can be high returns on investment following a rise in the price of gold on the market. If you’re a growth-focused gold investor, you can still get significant dividends, especially considering how research on its history has proved how gold stock pays high dividends.
Since trading in gold is not correlated to bonds, real estate, and stocks, it’s a sure way of expanding your investment portfolio. If you’re worried about inflation and a decline in the value of major currencies, then investing in gold is the way to go.
Gold preserves wealth
As in the past, today gold still holds a significant place in our modern economy. Over the years gold has been known to preserve wealth for generations. The same doesn’t apply to paper-based currencies. A case in point is the economic crisis in the 1970s. Gold can act as a cushion against a decline in the US dollar.
Gold is priced in US dollars all over the world. Based on this fact, investors in gold holding other currencies can find investing in gold cheaper when the US dollar declines in value. With rising inflation, gold prices increase, which is a positive signal for gold investors?
Every single investment has its benefits and disadvantages. Since investing in gold has several options, it still can be considered to be a worthy investment. You can choose to invest in physical gold, stocks, and shares in gold mining companies. On the other hand, gold is an investment option with many qualities that make it attractive to many investors.