Why Gold is an Excellent Investment
Gold is an extremely popular precious metal and has been desirable for mankind as long as we can remember. It is a yellowish precious metal with intrinsic values that make it a sought after item. Gold has a history of being used as a currency and for being exchanged for goods and services. For millenniums it has been used to gauge wealth and affluence. And even today, gold experts like Harald Seiz are advocating for the metal.
Investment-wise, gold is a very important commodity that every investor is advised to have in his or her portfolio, as it is the best option during times of economic uncertainty. This is one of the reasons why gold is regarded as one of the most important, if not the most important, investment option.
Gold has always been associated with rich and affluent individuals in our society and has been used by them as a yardstick to measure their importance. It can be seen in gold-plated cars, clothes with gold applications, gold jewelry, and so on.
Consequentially gold for a long time was seen as an item that was exclusively available to the elite. Luckily that narrative no longer holds ground in today’s world, as people of all economic backgrounds can own gold. Investing in gold is easier today than it ever has been.
Harald Seiz, who knows a lot about the gold industry and is a successful entrepreneur in the gold sector, has said that “gold is a store of value that is available to all, and investing in it is a wise decision that everyone should take advantage of.”
Middle-class investors, are always looking for an opportunity to improve their portfolios. They are looking for ways to grow their wealth and secure their future, and gold is an investment that is tailored to suit the needs of all people, no matter where they are on the economic ladder.
There are many reasons why people can invest in gold and then confidently lean back, knowing that it will do their portfolios no harm.
Gold is an asset with a history of not depreciating over time, unlike paper currencies, coins, stocks or other assets. It is a way to pass and preserve wealth from generation to generation, as people have valued the unique properties of this precious metal since ancient times. The other reasons why one should diversify into gold include:
The weakness of the U.S. dollar: Gold is an asset to hedge against the crash of the U.S. dollar, which is considered to be among the world’s most important reserve currencies.
The price of gold always appreciates during times when the dollar is depreciating. The value of the U.S. dollar can depreciate for various reasons, including the notoriously large budget and trade deficit of the country.
As a hedge for stock market investments: For investors who own stock and fear that the market might crash, gold may be the answer, as it is known to move diametrically opposed to stocks most of the time. It can be used by investors to hedge or shore up their investments in the stock market.
There is no special knowledge required: Investing in gold does not require any in-depth or professional knowledge of the commodity as other assets do, such as diamonds, art, and antique furniture. Determining the value of gold is pretty straight forward.
No counterparty risk involved: When an investor buys gold, he or she does not need enter into a contractual tie with another party to make the ownership whole, because gold remains a financial asset that is not simultaneously some other entity’s liability.
It is a tangible asset: Unlike many other investment assets, gold is a tangible asset that investors can hold in their hands, meaning that it is impossible to hack or erase it, which can happen with brokerage accounts, bank accounts, and other payment services in the predominantly digital financial markets.
Final thoughts: Investors diversify their portfolios to grow their wealth, and adding gold will help people achieve this, as it comes with less risk than a majority of alternatives that present themselves in the financial markets.