5 reasons to invest in gold as a starter
As a start-up investor, investing in gold is a smart move. After all, gold is an alternative investment with a lot of advantages. Still hesitating? In this blog, we discuss five key reasons why investing in gold is a good idea.
Gold as an inflation-proof investment
1. Gold resists inflation. In times of inflation, when the prices of goods and services rise, gold usually retains its value or still increases in value. Hence, buying gold can be very beneficial in economically uncertain times.
Limited supply and growing demand
2. Today, there is significantly less gold being produced than in the past, which is a big advantage if you are investing in gold. Namely, this means that the quantity of gold is only steadily increasing. Unfortunately, this is not the case for the demand for gold, which continues to grow rapidly. So if you buy gold, its value will most likely continue to rise. This is because the demand for gold is high, while the supply remains limited. As a result, the price of this precious metal is rising and selling gold can become increasingly attractive.
Why gold’s value remains steadfast
3. Although the price of gold can fluctuate, it is generally more stable than, say, the price of shares. Gold has proven over the years to be stable in value and is therefore considered a safe investment. Even in times of war or economic crisis, gold retains its value. In comparison, the price of shares or cryptocurrencies can fall sharply, making these investments riskier. If you buy gold now, chances are the value will be about the same in a few years’ time.
Gold as a reliable resource in economically uncertain times
4. Owning gold in times of economic uncertainty, gives you a lot of advantages. This is because gold cannot “collapse” like currency can. During the last financial crisis, there was a lot of concern about the stability of the euro, which led many people to invest their money in gold. This is because this precious metal can easily be converted into other currencies in case the euro collapses. Therefore, during a financial crisis, central banks often buy additional gold to strengthen their reserves.
Alternative to savings in the current interest rate environment
5. It is not so obvious these days to save traditionally for old age because of the extreme interest rate policies of central banks worldwide. It is becoming increasingly difficult to earn returns on savings, if not impossible. Several banks have cut interest rates several times over the past year, and negative interest rates are no longer a pipe dream. Therefore, several banks have adjusted their conditions to be allowed to charge negative interest rates. As a result, the current interest rate climate is pushing more and more investors towards alternatives for their savings, such as physical gold or silver.
So plenty of reasons to add gold to your investment portfolio. It is a wise choice if you seek stability and protection against inflation. Don’t wait any longer and start exploring gold investment opportunities today