7 Reasons Why Gold is A Good Investment
What is Gold Bullion?
Gold bullion is the term for any investment-grade gold product. There’s a common misperception that the term bullion is only used for gold bars, like those you see in movies such as James Bond or The Italian Job. This is incorrect. The most common forms of gold bullion are gold bars and gold coins. Many investors choose to hold both as part of their gold bullion holdings. But why are they choosing to invest in gold at all? Here are my seven top reasons for why it’s worth investing in gold:
1. Hedge Against Inflation
Gold has historically shown itself to be a hedge against major factors that affect our investment portfolios, including inflation, deflation, macroeconomic, geopolitical, systemic, and monetary risks. It’s a safe haven that operates outside of the monetary system, meaning central banks do not control its supply, demand, or price. Because of its finite supply and indestructible quality, gold has shown itself to hold its value over long periods of time, in contrast to many paper and physical assets.
2. Safe Haven Currency
Gold is often described as a borderless currency. This means that it operates independently of any national monetary system. Its finite supply and durability have allowed it to maintain value over long periods, making it both a safe haven investment and a safe haven currency. Unlike other currencies or assets tied to third parties, physical gold is entirely yours to do with as you please.
3. Portfolio Diversifier
Gold and silver have a historical negative or weak correlation to price movements in the financial markets, especially stock markets such as the New York Stock Exchange. This makes gold an excellent tool for a balanced portfolio, allowing investors to benefit from both short-term and long-term market events.
4. High Liquidity
The gold market is one of the most liquid markets, which makes it one of the easiest to buy and sell. Its liquidity and global reach mean there is no need for the buyer or seller to predetermine a price before entering the market, as the market sets the price according to demand and supply at that moment. Unlike other physical assets, such as real estate, which may take months to sell, gold can be traded quickly.
5. Storage Options
The beauty of buying physical gold is the flexibility in storage options. Investors may choose to store their gold at home, but there are also well-established, secure, and regulated intermediaries for long-term storage and insurance of bullion holdings. For example, through your GoldCore account, you can have secure storage and easy access to the gold market if you decide to sell.
6. Protection Against Uncertainty
Gold is known to be a safe haven in times of high economic and political uncertainty. It acts as a hedge against geopolitical and economic upheavals. In recent years, we’ve faced numerous global challenges, including the pandemic, rising cost of living, and geopolitical tensions. It is crucial to protect our investment portfolios against such events, and gold helps you do this.
7. Intrinsic Value
When you buy physical gold bullion, you own a tangible asset with intrinsic value. Unlike digital investments or paper assets, physical gold is not someone else’s liability. This means you hold an asset that will retain value regardless of market fluctuations or the actions of third parties.
Should You Buy Bars or Coins?
Now that you’re sold on the idea of investing in gold, let’s discuss whether you should invest in gold bars or coins.
Gold Coins
There is no time like the present to invest in gold coins. They have been a highly lucrative investment option for thousands of years. Gold coins offer the ability to diversify your portfolio and safeguard your wealth. Unlike gold bars, each coin is instantly recognisable worldwide and difficult for counterfeiters to replicate due to unique markers and micro-engraving within their design. Coins offer more flexibility as they are smaller units, allowing easier cashing in on your investment. For investors with smaller capital outlays, coins are a great starting point. Additionally, some gold coins may have numismatic value due to their age or collectible status.
Gold Bars
Gold bars are often considered an efficient way to invest in gold, especially for those with larger capital. While small bars may have high premiums, larger bars can be purchased at lower premiums through dealers like GoldCore. Secure storage options for gold bars include specialised, insured vaults in secure jurisdictions. These vaults maintain the chain of integrity, making the process of selling gold faster and easier. Gold bars remain an attractive investment due to their efficiency and lower premiums compared to smaller bars or coins.
With these seven reasons, it’s clear that gold is a good investment. Whether you opt for gold bars or coins, investing in gold bullion offers a tangible, secure, and valuable addition to your portfolio. If you’re ready to dive into the world of gold investing, start exploring your options today and secure your financial future with this timeless asset.
Watch more here: https://www.youtube.com/watch?v=1D4C5ZszlK4
Article and video courtesy of Dave Russell from Gold Core.
