Reasons to invest in Gold
Gold is a time-tested way to protect and preserve a country’s wealth, and it’s no different for individual people with portfolios, who include gold for the very same reasons:
1. Portfolio diversification: Gold is an easy and convenient way to diversify your investment portfolio..
2. Security: – help protect your assets, and be prepared when times change, and the market become volatile.
3. Hedge agains Inflation: Gold has a well-earned reputation for making a great hedge against the inflation that can eat away at the value of paper assets. No matter what happens to gold, it will retain the value that it took to mine and produce it, while paper assets can theoretically go to zero.
4. Political Instability Markets hate uncertainty. Gold is historically known for retaining its value regardless of external political conditions. Whenever there is a political crisis, gold tends to take off. People love the safety that investing in gold delivers.
5. Higher DemandEmerging markets, like highly populated India and China, have increased the demand for gold. Gold typically has a more prominent place in the culture of these types of countries. Gold demand in China has been steady among those who view gold bars as a traditional type of savings. In India, gold is highly valued during the wedding season, increasing the global demand for gold.
6. Gold IRAsGold-based IRAs are becoming increasingly popular these days. Backing your IRA with gold offers excellent protection for your retirement funds when market changes can implode your overall investment portfolio. The gold IRA is a retirement account that is approved by the government and backed by physical gold.
7. Constraints on SupplyMuch of the available gold supply is the result of global central banks selling gold bullion. Generally, when the amount of gold decreases, the price of gold increased.