Thinking about diversifying your investments with gold?
Back in the day, when people traveled in wagons pulled by an ox, we discovered bits of shiny metal in a running stream. Seeing the beauty of this particular shiny rock, the pioneers gathered as much as they could, leading to the first major gold rush.
The first settlers battled against the harsh weathers, rabid animals, and sometimes amongst themselves because they saw the value gold held. Today, is it worth going through all that trouble when you’re investing in gold?
If you’re worried about investing your hard-earned money in gold, read what’s below. Here, we have solid reasons and several benefits that may help you in your decision.
1. Gold Has a Historical Price Tied to it
Long before the pioneers found gold in the riverbeds, ancient Egyptians, Romans, and the Greek all used gold in their day-to-day lives. They made many baubles and trinkets out of gold and even wove it into their clothes.
People made these trinkets with techniques not known in this modern day. This makes their craftsmanship one of a kind in that no one can recreate them. This is what makes them all the more valuable.
Also, everyone knows that historical items only become more valuable as time passes. This makes investing in gold coins dating back to the early 1900s a great idea. You’ll find your investment will grow every 10 years or so.
2. There Are Many Records of Gold’s Stock Value
Many websites are available which hold a history of gold’s value throughout the years. These can help you decide whether gold is a good investment. They can also help you predict the gold’s value’s trajectory.
Once you take a look at gold’s value through the years, you’ll start to notice a pattern in it increasing and decreasing. With this information, you can determine when it’s likely gold’s value will be at its best or worst. You can use this information to decide if it’s better to invest now or later.
As of last year, gold is now on the rise again after a major dip in gold stocks back in 2013. So, while it’s on the rise, it may be a good idea to invest in some gold now. It should keep climbing up for a good 20 years before another crash in its value.
3. It Can Outperform Other Stocks and Investment Options
Many people claim that gold has no market value. They say that gold investments don’t hold a candle compared to other, more modern investment options. Yet, a look at gold’s performance during the last recession proves otherwise.
The prices of gold rose well beyond 100% of its original price while everything else fell. This is because gold holds a certain value when there’s less paper currency going around.
People tend to ignore gold when they’re investing because of their strong belief in the statements listed above. However, once their investments start to fall, they look at gold and put a high value on it again.
There are also other incidents where gold outperforms other popular investment options, like in October when it beat Bitcoin’s value. Other people may argue it’s a fluke because Bitcoin isn’t a good investment to start with. But the numbers cannot lie — the gold stock was more valuable by a hair’s breadth.
4. Gold Is a Good Hedge in the Economy
A lot of people believe gold is a good hedge against inflation, but more evidence points to gold being effective as a hedge against an economic crisis. This statement supports what’s written above. As times become tougher, prices of gold rise.
This makes an investment in gold a valuable asset to have in case another recession happens. You can expect your investment returns to increase as times get tough. Once whatever economic decline passes, you will have a small window to cash in your investments for a greater profit.
5. You Can Make Many Small Investments with Gold
A good quality gold has is how you can buy a small amount of gold at a time. There are times when you’re worried about making a big decision when investing. With gold, you’ll notice you won’t face this problem as much.
Unlike many other investment options, you can buy gold in small amounts. Collecting small portions of gold at a time ensures you won’t put your finances in a compromising position.
You’ll also find that stockpiling your gold is easy. A lot of people in the past broke down gold into small pieces to control its value per piece. Gold coins are the best example of small gold investments.
This makes it easy for you to collect them in small amounts and keep them secure.
6. The Demand for Gold Continues to Increase
Gold is a popular commodity nowadays. People are fashioning many clothes and utensils with it and are even enhancing their dining experience by adding shreds of gold to their food. However, gold is a limited resource and because of this, it’s price and demand are increasing.
All over the world, countries are placing a high price because they need gold. In countries like India, gold is a staple for their culture. They wear it as jewelry and clothing to celebrate important events, like weddings. In fact, demand for gold is at its peak when wedding season hits India.
Other countries like China use gold as a substitute for their savings. As per their tradition, they use gold bars in place of high amounts of money. So, investing in gold bars may not be a bad idea.
7. Gold is a Liquid Asset
It’s never hard to sell your gold. All you need is someone to verify its authenticity, and you can sell it to an investor who wants to buy it with ease.
Know Why Investing in Gold Is a Good Idea Now
Stock markets are a volatile place. With so many choices to make, investing in gold is the best idea. It’s low-risk and it’s easy to handle! Make your investments now!
Looking for other low-risk investments with high rewards? Find out the 4 safest investments you can make here.