Gold has always been a popular investment option majorly because of its investment worth.
The gold price has seen ups and downs in the history of gold prices. This article will help you figure out why you should invest in physical gold.
No Correlations with Stocks And Bonds
The gold price has a tendency to change in the fluctuating times of stock market correction. Gold is uncorrelated to the market performance stocks as well as bonds. It makes gold a fabulous asset for the diversification of a portfolio.
When you buy physical gold on the internet from various vendors like Global InterGold, no one gets to know how much gold is safely stored at your residence. This is one of the biggest benefits of buying physical gold as compared to investing in funds or purchasing Gold ETFs.
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Gold – The ‘Safe Haven’ Asset
The turmoil and uncertain times faced by the world’s biggest financial markets have made gold a safe haven asset to invest in. It has been visible since the 2008 financial crisis, as the gold price has doubled within 3 years.
However, since 2016, various Asian currencies have weakened; their chief banks have purchased gold. Gold is considered to have a better store value as compared to their domestic currencies.
No ‘Issuer Risk’
In case you wish to make an investment in gold with retail investment instruments like gold certificates or warrants, you are exposed to something called ‘issuer risk’. Issuer risk is defined as the risk of losing a substantial sum of money with the investment, in the event the investment product issuer files for bankruptcy.
Since issuer risk is considered as a minor risk, the 2008 economic crisis showed that even banking giants can go bankrupt. Issuer risk is worth considering. If you buy physical gold you lower down the risk.
It is a Safety Net
Gold is considered as a safety net against inflation. All over the globe, we have a low inflation rate. Although, it won’t be the same in the long run. That’s why buying gold can keep you in the tough times of inflation. During such time, gold price goes up and most currencies fall down.
Gold- Always Valuable
Since gold doesn’t fetch any interest, not all investors love investing in gold. As per the investment experts, gold will always weight heavier in the terms of value since it faces scarcity in demand and supply.
The gold rate might fluctuate; the gold stored physically in the safety of your home is likely to never be worthless. The high demand for gold ornaments; by the middle class is increasing. It is a trend that isn’t going to slow down anytime soon.
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It is an added advantage benefit of having physical gold, rather than making an investment in the gold funds, ETCs, and much more. You can actually touch and feel the asset as it’s tangible. Financially, it doesn’t add any value to your purchase. Undoubtedly, it’s a major benefit of holding physical gold and keeping it in the safety of your home.
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