Investing in gold is a smart and best investment decisions you can ever make for your retirement. Gold bullion provides sense of security for many investors. if you’re considering to buy or invest in gold, you should know the potential risk and rewards that goes along with it.
The question is; Why Gold? Do you need to invest in Gold?
Most people buy gold for one reason or the other. Lets look at top reasons why most investors purchase gold and why you need to invest in this precious metal.
5 Reasons why You Need Invest In Gold.
If you haven’t invested in Gold or planning to invest in gold then you need to know the 5 reasons why you should invest in Gold and other precious metals.
#1. Investment Portfolio Diversification.
Investing some amount of your money in physical gold is a way to diversify your investment and to protect your future from long and short term economic down turn.
#2. Weakness of the U.S. Dollar
Investing in Gold is a way to secure your future and make money when the value of dollar (world most reserved currency) falls against other currencies.
During the year 1998 and 2008 when the Dollar declined against other currencies as a result of trade deficit and supply money, the price of Gold tripled reaching near $1900 mark.
#3. Gold Hold Its Value.
Gold is not like a paper that wears away. A precious metal like Gold coin and other asset hold’s their values for years and remains unchanged. Investor sees Gold as a way to pass their wealth to generations.
Gold is known to withstand inflation over decades because it price rises when cost of living increase as well. Over the years, the investors have seen the rise of Gold soar while the stock market falls during period of inflation.
#5. Preserves Wealth.
Gold is highly undervalued today over the fiat currency and many people are not investing in this precious metal. Gold can be preserved for thousands of years and converted to other ornament without losing it value. You can easily convert your wealth into Gold and pass it down to your generation.
Paper currencies cannot be preserved or passed down to your generation because it deteriorates. Government may decide to do away with old prints for new ones, thereby rendering the old currency useless.
This is the right time to invest in Gold to secure your future against economic down turn and to preserve your wealth for future use.
Why Consider Gold Bullion as an Investment?
- Gold is easy to buy, sell and hold coins. such as Kruggerand coin.
- Investors can test the content of Gold when they buy gold coins.
- It feels satisfying having a precious metal.
- There’s significant potential for you to make money with Gold.
Gold Investment Advantages and Disadvantages.
Let’s see some pros and cons of buying Gold.
The Pros of Investing In Gold.
- It holds value over period of time since there is limited in supply.
- Gold is a mark of wealth and way to transfer wealth to generations.
- We can turn to gold when there is economic down turn.
The Cons of Investing In Gold
- Dealers might charge premium price.
- The liquidation spread is very large.
- Insuring gold bullion can be expensive.
- Unpredictable direction of price.
In conclusion, Investing in Gold is one the best thing you can do to secure your future financially. Now the Gold price is kind of affordable. It is the right time to buy Gold.