7 Reasons Why Gold is Still a Good Investment

Since time immemorial, various generations have continued to hold on to gold for many reasons. Even as different promising investment portfolios such as cryptocurrencies emerge, below are a few rationales as to why you should still consider gold as a competent investment.

  • Gold is a stout store of value

In case you are seeking a long-term store of value, do not look further than gold. Unlike various fiat currencies which constantly depreciates in value, gold has for over the past 3000 years proved a reliable and stable means of preserving and passing down wealth from one generation to the next, with entirely negligible glitches if any.  A good example is the Sterling Pound, the currency has been around for nearly 1200 years and has lost nearly 97% of its value in its entire period of existence.

  • Unparalleled liquidity

Gold bears higher liquidity compared to most assets. It is a universally accepted mark of quality, with a variety of uses; in fact, there are about 15 uses of gold common to all regions of the globe. The precious metal can always be exchanged for fiat currency or traded against other goods and services anywhere in the world.

  • There is no specialized knowledge required to invest in gold

Unlike stokes, bond, cryptocurrencies, real-estates, among a series of other investments, gold requires no specialized skills. As an investor, all you need to do is simply buy and store your gold bullions. There are no tedious charts to compare all day long, or trading bots to trust with your investments.

  • Gold is a great way of diversifying your investment portfolio

As you lower the overall risk of your different investment portfolios, there is no better way to do it than through investing in gold, as aforementioned, it is a stable store of value and isn’t contrastingly hit by fluctuations in market value.

  • Gold is an excellent hedge against inflation

As inflation hits, different forms of investment valued in fiat currencies such as the Dollar usually depreciate in value. Gold has over the past several decades surged in value as the stock markets and fiat currencies plunged in merits in times of inflation crisis. Many wise investors, therefore, tend to hold much gold than any other forms of investments during high-inflation periods as it safeguards their purchasing power.

  • Gold enjoys a limited supply

What does limited supply of gold mean to you as an investor? With diminishing supply of gold comes greater demand for the commodity. This means that the price of the precious metal will constantly soar accruing lump sum profits over time. Statistics indicate that there has been declining production of new gold since the year 2000 coupled up with growing demand.

  • Privacy and confidentiality

Finally, contemporarily, virtually any other forms of investments available do not provide top-tier privacy and confidentiality to investors. On a different note, gold is one type of investment where one can go anonymous. Any investor can choose to keep his or her gold assets private and oblivious to anyone’s knowledge apart from parties directly involved in gold transactions.

Overly, gold is the best means of protecting one’s purchasing power and hence the most reliable investment option in times of economic crisis. Additionally, its other advantages give it a long-term competitive edge against any other forms of investment.