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Why is a gold bar a good investment?

Jun 15, 2023 | Blog

Why is a gold bar a good investment?

In a world full of financial uncertainty, investors are always on the lookout for stable and stable value investment options. One option that has caught the interest of both experienced and new investors is the gold bar. But why is it still considered a good investment?

In this article, we give some compelling reasons why investing in a gold bar is a good idea.

Value retention

First, a gold bar is always going to hold its value, given that it is known as a valuable commodity. It has been used as a form of currency for thousands of years and is recognized and accepted worldwide. Since gold is scarce and cannot be reprinted like paper money, it tends to retain its value even during economic uncertainty. This constitutes a significant advantage as it means you will not incur a loss, unlike other investment options where this can be the case.

Risk spreading

Adding gold to your investment portfolio spreads risk. Investment portfolios tend to consist mainly of securities and equities, but these traditional asset classes carry higher risks that can threaten your portfolio. Gold often behaves differently from other investments, such as stocks and bonds. If the value of those other investments falls, the value of gold may actually rise. This can help reduce the risk in your investment portfolio.

Protection against inflation

Investors often consider gold as a protection against inflation. This is because high inflation can erode the value of money, threatening your wealth. Gold, on the other hand, just tends to maintain its purchasing power. Hence, investors often buy it to protect their wealth from the decline in purchasing power caused by inflation.

Global liquidity

Gold is globally tradable and has high liquidity. It can be easily bought or sold on international markets. This makes it an attractive investment for investors looking for assets that can be quickly and easily converted into cash.

Middelgrote goudstaaf op goudkorrels in hand

Are you convinced of the benefits of investing in gold?

To start your investment journey, we invite you to take a look at our shop or drop by at our office. This is always available Monday to Friday from 9am to 4.30pm.