Is Gold a Good Investment? 8 Reasons the Answer Is Yes
With everything that’s going on in the world today, there’s a lot of talk about financial stability. Is your money safe in stocks? Will banks go under on the backs of COVID-related loan defaults?
These are all questions that don’t have many great answers. One answer that stands above the rest when it comes to stability though is investing in gold.
We get the question all the time, “Is gold a good investment?” The answer to that is a resounding yes! Keep reading to learn about all of the key advantages you can enjoy by moving your wealth to this historic asset class.
1. Gold Is the Oldest Currency on Earth
When you need something reliable during times of unrest, it’s often said to go with a solution that has proven itself functional for the longest period of time. Gold is the currency that best embodies that principle as it has been used to store wealth for thousands of years.
You could go back beyond the times of ancient Egypt and you’d still find that gold had purchasing power. That has continued to hold today and will far into the foreseeable future.
2. Its Value Holds Steady
What matters when it comes to storing wealth is whether or not the asset class you’re buying holds its value. Gold does.
You see typical currencies rise and fall based on sanctions, laws, trade agreements, and the like. During all of this up and down, if you pay attention to how gold is valued, you’ll see that the asset holds steady. When you invest in silver and gold, you can use it as a hedge against inflation, making your investments and future more stable. This also makes it a great place to tie up your money if you’re concerned about your portfolio losing value (and you should be).
3. Your Asset is Tangible
The world of valuing complex assets is a highly subjective one. That’s because there are few objective assessments when it comes to saying that stock in McDonald’s is worth X while stock in Nike is worth Y.
Gold is a tangible investment that one can hold in their hand and see it exactly for what it is. This makes assessing its value much more objective, further adding to the asset class’s stability and security.
4. Self-Reliance
Most people are interested in this asset because of its simplicity. That faith in simplicity is well-placed as few investments are as turn-key as gold.
Think about it, if you were to tie up your money in a private business like a horse farm, you’re liable for feeding horses, hiring staff, paying property taxes, vendors, and more. Only after all of those tasks are done can you see what your investment’s profits are.
Gold, on the other hand, is just gold. It doesn’t require any special maintenance or legwork for it to do its job.
5. Off the Books
It’s hard to have a discreet means of wealth today. Record keeping has largely gone digital and if your assets are recorded electronically, chances are the IRS and other agencies will have a beat on what you own.
Gold is one of the few asset classes that you can buy with cash, put in storage, and keep privately. So long as you’re discreet about your purchase and storage, these assets may be safe from events like lawsuits.
6. Multiple Sale Opportunities
You wouldn’t walk into a store and pay for a loaf of bread with a flake of your gold bar. You’d need to convert your gold to a common currency and then make a purchase.
This is one of the primary reasons why people shy away from gold. They don’t understand how to convert it to cash.
Today, there are multiple, convenient places that will weigh your gold and pay you for it on the spot. These vendors offer different rates for gold so be sure that you know your brick’s market value before you make a deal.
The point is, if you need cash for gold, it’s as easy as traveling to your nearest town and making a swap.
7. Skip the Banks
If you’re skeptical of banks, you’re not alone. Banks have been accused of shady practices on more than one occasion and were responsible for the last financial recession.
With gold, you don’t have to deal with banks which is great news because if they lose their footing again, you won’t have to worry about your money disappearing. Gold is something that you can store in a safe within your home or pay a private vaulter to store for a monthly fee.
8. No Special Skills are Required
You don’t need to be a gold savant to invest in gold. All you have to do is:
- Go to a reputable online dealer like cmi-gold-silver.com (or find a local dealer by exploring your community)
- Know what today’s gold rates are (which you can learn by looking online)
- Make a purchase
This is a much easier process than buying another tangible asset, like diamonds, that has its value affected by subjective elements like clarity and cut.
Is Gold a Good Investment? We Think so and We Hope You Do Too!
Hopefully, this post has answered the question “Is gold a good investment?” with some solid facts. This investment can help you stabilize your financial portfolio in these times of economic unrest.
As with all things related to finance, diligence is required, so consider talking to a financial advisor about your ambitions to better understand whether or not this asset class will help you get to your goals.
If you’d like more investment guidance or other advice, explore additional content on our blog!
