Gold is known worldwide for its vibrant history, lush appearance, and financial worth. For thousands of years, gold has been upheld to the highest of standards; a luxury that everyone wants to invest in. Listed below are the top reasons to own gold today.
Heightened Demand
In the past, emerging market economics experienced an increase in wealth, which pushed the demand for gold. In many other countries, gold plays a significant role in culture and tradition. For instance, Indian wedding season in October sees the highest global demand for gold. China uses gold bars as a form of savings currency.
Frailty of the US Dollar
The fall of the dollar value against other currencies draws people to the safety of gold. This raises gold prices. One ounce of gold costs roughly 1800 to 1900 dollars.
Diverse Portfolio
Diversification occurs when investments do not correlate with other investments. Historically, gold has had a negative interaction with stocks. For example, the 1970s were considerable for gold, but poor for stocks. The reverse situation happened during the 1980s. 2008 saw a plummet in stocks while gold grew. Investors that that wish to accurately diversify their portfolio will reflect these changes by combining gold and stock bonds accordingly. This will greatly reduce risks of unpredictability.
Holding Value
Unlike paper currency and coins, which can decrease in worth, gold maintains its value. Many individuals see gold as a way to properly preserve and pass on their wealth from one generation to the next.
Bottom line, gold is key to a diversified investment portfolio. Its price increases when the value of other currency and investments decrease. Its value has persevered throughout the ages, making it an asset everyone should consider.