Is Gold A Good Investment: How To Invest In Gold

Gold has a recorded history of over 5000 years as an asset. The shiny metal has attracted generations given it’s unique properties.

Gold doesn’t corrode. It can be easily melted to form various shapes. Moreover, gold has a unique and beautiful color, unlike other metals. It is sufficiently rare to hold value. Many of you would have questioned if gold is a good investment either based on the rapid increase in gold price.

There are many reasons why investing in gold is a good idea. Long Track Record Gold has been used as an asset for more than 2,000 years. Out of all the assets we discussed, it has the longest history. And it is still used to this day; not only by individuals but also by various governments.

Gold has a long history of being used to procure goods and services. It forms the perfect medium of exchange as a currency.

Currency

Liquidity

Since gold is universally accepted and has a long track record; it is considered one of the the most liquid asset. Gold can be converted to cash easily anywhere in the world.

Portable

Physical gold is one of the few assets you can pick up and leave at a moment’s notice.  History is rife with individuals leaving with only gold; abandoning all other assets when their life was threatened.  It could be Jews during WW2 or refuges from Vietnam leaving by boats.

Deflation Hedge Deflation is when the price of goods and services falls over a period of time. Gold loses value slower than other assets in times of deflation. Cash does well in a deflationary environment.

Store Of Value Since gold has generally retained it’s value over long periods of time including inflation, deflation, wars, famine, etc it is a good store of value. It can also be passed down through generations.

Inflation Hedge Very few assets act as a good hedge against inflation. Cash loses it’s purchasing power. Bonds will fall in value as inflation increases. Gold preserves purchasing power in times of Inflation.

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