Gold is one of most traded metals on the international markets. This makes it the most fluid metallic commodity investment to make.
The following are top 10 reasons to invest in gold:
High demand: Due to its increasing rarity, the demand for gold is constantly on a long-term upward trend which ensures that it is consistently in high demand.
Inflation proof: Gold is an international and universal standard that is safe from influences of one country’s monetary policy. Thus, unlike ordinary currencies, it is free from adverse inflationary pressure.
Fiscal Stability: Unlike major international legal tenders such as Dollar, Euro, Sterling Pound, Yen, Yuan, etc. it remains stable irrespective of changes in political and legal status of a given regime.
Standard measure of value: Gold is a universal standard measure of value and therefore is a standard against which major international currencies and reserves are based on. Thus, its value can be exchanged wherever and whenever you want, independent of the geo-political limitations.
Appreciative nature: Due its declining availability, gold’s value cannot be diluted by consequence of over-supply. Consequently, although there could be short-term shocks, its value keeps on appreciating in the long-term.
Portfolio Mix: Due to the various units of gold and gold equivalents, gold can be easily blended with other investments to form a secure and diversified investment portfolio.
Store of value: Consequently, most international reserves such as those of the World Bank and IMF and indeed reserves of major economies such as US, UK, India, China, Russia and others are stored in the form of gold.
Ornamental value: Gold is not like any other metal and for that matter, not like any other ordinary legal tender. It has an ornamental value and can thus be molded into various forms that make it gain higher value than its intrinsic value. The ornamental value of gold ensures that it will always be an emblem of beauty, class and nobility and therefore it will continue to be held in high esteem for ages to come.
Sentimental value: The sentimentality of gold has been appreciated since time immemorial. Gold remains the most precious gift that one can give to another. It is found in golden wedding rings, golden watches, golden chains, status chains such as mayoral and royal chains, medals of Honor and many other modes of appreciation. Gold will always hold its position as one of the most sentimental gifts awarded as a token of appreciation recognized and appreciated universally.
Security: Gold can be highly secure. Due to its universality in terms value determination, gold is easy to be insured and stored. Furthermore, gold has always been considered as the safest hedge, next to real estate. However, due global meltdown that has created thousands of foreclosures across US and EU, many people have lost faith in housing as a safe hedge and therefore are looking forward to gold as the only viable safe hedge whose value can hardly be lost due to global economic meltdown.