Once you start making money, you realise that saving money is not the best option. Instead, investing the money in the right tools and investments is the most viable option to protect and grow your money.
Investing your money not only helps you hedge your funds but also protects you from inflation.
Investing in gold is the most traditional form of investing, which has been around for many years now. While there are various investment tools in the world these days, nothing beats the security that gold provides.
The value of currencies can go up or down depending on political and economic factors, but the values of precious metals don’t fluctuate as much. Thus, your investment in gold will retain most of its value even when global issues affect the prices of currencies, stocks, and cryptocurrencies.
Owing to innovation in E-commerce, buying gold today is very easy, as you can simply head on to a website like goldstackers.com.au to buy gold bullion for yourself.
If you are still sceptical, here are some of the reasons why investing in gold is a viable option.
1. It is tangible
When paper currency and other financial instruments fail, precious metals such as gold hold their value and have held their value for ages. Moreover, gold is tangible, which makes it an ideal tool to store wealth as it can be passed down from generation to generation.
Besides, it can be melted to be used as jewellery, enhancing its value proposition.
2. Hedge against inflation
If you look at the historical pricing of gold, you will find that the value of gold increases over time to match the costs of living. This makes it a great investment when you want to protect your money from inflation. You can be assured that with the growing prices of commodities, gold’s price will also be growing to match the inflation rates.
3. Limited supply
The supply of gold is limited. Gold is a naturally occurring resource, and at some point, its supply will run short. So, there is only a limited amount of gold globally, making it a limited resource.
Just like every scarce resource, the scarcity makes the metal more precious over time.
With a limited supply of gold and increasing demand, you will see gold prices skyrocketing in the future.
4. Diversification of investment portfolios
One common rule of investing is that it is always wiser (and safer) to diversify your portfolio. Having all your investments in the same place increases your risk because if the value of that investment falls, your portfolio will lose most of its value.
So, if you are invested in real estate, stocks and other such things, gold investments can help balance and diversify your portfolio. Gold is considered to be one of the safest forms of portfolio diversification.
5. You can take loans against gold
In case you need to take a loan at some point, you can take a loan against your gold. Various banks offer such loans. Moreover, if you have taken a loan on your gold, and the value increase, you can even top up your loan amount.