Gold bullion offers a lot of benefits that can’t be found in any other asset class which makes it different from others. The advantages associated with gold investing become tools for traders and investors. There are few risks associated with investing in the gold but if we compare and benefits and disadvantages, then the favor will be given to benefits because there are a lot of. For a trader gold is an essential part of the portfolio.
Yellow metal offers a lot of benefits, we list a few of them below.
#01 Gold is Equivalent to Money
In the earlier times gold used as money and medium for exchange but in today’s world, it is not used as money. But it has a history in which it was being used as money. It’s used for a store of value from at least 3000 years. In the real paper currencies Pound is 1200 years old while gold is older. Even today’s developed nations used the gold as currency in their old times.
It is alternate to the money and best medium to store value, the one biggest promise of money is that it serves in long term to store the value. While when we consider gold a medium of store, we are getting the same value that a currency promise.
If you compare that much paper currencies lost against gold in last 100 years then you understand that why riches prefer to store it. There was a time in which a few shorts-term currencies gain more than gold but over a long time it totally reverses in favor of gold.
Gold trading and investing is full of liquidity and volatility but when you consider it for long-term investment, it is best option for many, like all paper currencies lose their value over the period of next five years but the value of gold will appreciated in this time, as history told us.
Purchasing physical gold is a best option for the long-term investment. Even a best options for next heirs, it will makes them able to convert it to paper currency at any time.
#02 A Tangible Asset to Invest
We well know that gold is a tangible asset as everyone from us experience touching it in our life. You can hold your investment in your hand which you cannot do with any other investment. It required none of maintenance the only need is a secure storage. The good thing is plenty of gold is available and purchased at anytime.
#03 Storing instead of Producing
The misunderstanding about investment in gold always remain there specially in the new investors as they look into gold investment particularly for investment gains. This misunderstood the role of gold in the portfolio, it’s not gold’s job to produce income for investors, its function is to store the value which converted anytime and will cover the investor from currency devaluation.
It cannot be erased or hacked because it is a tangible asset and will remain in existence. The only care required is storage of gold.
In today’s fast moving world it is necessary for an investor and to have some of wealth outside of digital form. We may experience multiple downfalls in the digital worlds of hacks and may vanish totally. So, if you possess the gold it will not be affected.
One thing about gold is clear it is not subject to the risk that come with paper currency.
#04 No Counter party Risk in Gold
No legal or paper contract required to hold the gold bullion. No paper contract required to make it. It’s only you, who will be involved in the ownership. No Middleman and no other party are necessary or a contractual obligation. When the crises hit or bubbles pop, gold will be the last man standing.
Nearly all the investors turn towards gold in the crises time. So, this is the powerful investment specially when things are not going well in your country and you are expecting an economic crisis.
In the last 3000 years of its history, we see its value never turns to zero, Which is a powerful feature of gold. It always has the value you can convert it to paper money, it never defaults in promises and obligations.
#05 Offer Secrecy
Just think wisely and consider how many assets are there which can offer you secrecy in your investment, even you find one but there is will not one with no counterparty. Only physical gold is one asset that can provide it. It always belongs to those who hold it which is a core significance of investing in this yellow metal. Investment in gold can be anonymous.
So, if you are interested in private or confidential wealth then gold is an asset which you can consider because it offers all the benefits you are looking for.
#06 Gold is Portable and highly Liquid
Gold is ideal for investment as you can carry anywhere and easily converted into cash. One can carry it in his pocket that is a plus advantage of investing in gold. When you want to convert it into paper money and bullion dealer in the world will recognize the gold and purchase it from you. Even you can find the gold dealer in your local area. It also can be traded for the goods.
Selling the gold is a quick process as compared to selling stock in your brokerage area. In most of the cases, it takes three days to convert your stock investment into hard cash. With the gold, you can get cash or good at the same time immediately. Investments in the gold are easily convertible to cash and you can carry it with you anywhere.
#07 No Maintenance and Easy to Store
The only question that comes with it is storing it, the cost of storing as it is a precious metal and it belongs to those who have in custody. So, if stolen it will create a problem for the real owner. Storing may involve a cost. Vaulting charges are low but you have to bear it when you invest in gold.
Put your gold in the vault until you do not need it. No maintenance cost involves in the gold investments as when you have in physical share the only thing is to keep it safe. It required little space to store and low maintenance cost.
#08 Gold investment Requires No Expertise
To trade in the other financial market, one needs to learn a lot and need skills to make investment decisions and if one invests in the art, then he needs to identify the real and fake.
Gold bullion required none of these, not training or special skills are required for the gold one can purchase it from a good dealer or from a chain and can store it. Investing in gold is straightforward and require no special skills.
#09 Gold Can Protect Against Nefarious Politicians
We all experience bad government decision from time to time and even in history like freezing assets and freezing bank account and garnish wages. Do not become the victim of such action, invest in gold. People who become the victim of such action had not warned which is even strange. So, when you store your value in gold you can convert that in such times.
Such actions become necessary in the financial crises times and remain in force for an unlimited time. You can protect yourself against such action while investing in gold, may be a portion of your total investment.
Holding gold outside of your home can protect you against such action and there It is possible to hold the gold off-shore.
#10 Gold is perfect Hedges
You can hedge your stocks portfolio with the gold as it has no relation with the currency and stocks. When the stocks are losing gold again in that time so trader and investors use it to hedge the investment portfolio and when there is an increase in inflation to stay with the same value of money, people prefer to invest in gold.
Most we see that when S & P crash gold rises and provide an opportunity to use it to hedge the portfolio. If you want that your portfolio outperforms when other assets and losing use gold in your portfolio.
#11 Gold Will Protect Your Portfolio
It can protect your standard of living and your portfolio. During the era of economic crises investments into gold can provide you the benefits that one cannot expect it is a tool to stay on your foot in the crises stage.
Crises always drive the fear higher in the investors are in the stock markets or in other financial markets because of a crisis, in the end, affects the livelihood of all citizens. In such condition’s gold is a safe haven.
If you want to invest in the gold even as a hobby go for it, because it may turn into a good investment opportunity and later on a career which can earn you’re your living expenses.