With so many options available for making the most of your extra cash, people might wonder why it’s worth investing in gold. Isn’t their money better spent on stocks and shares, property portfolios or retirement funds? In this blog, we’re going to give you six reasons to consider making gold part of your financial planning. 1. Gold is a strong hedge against inflation and deflation Unlike currency, property and other investables, gold has held its value over time. This makes it a very low-risk addition to your portfolio; something that can be preserved for future generations. Historically, the price of gold tends to rise with the cost of living, making it a steady investment. What’s more, gold is a safe bet when it comes to deflation. For example, during the American Great Depression, when the economy was plummeting, gold rates soared. 2. Gold helps diversify your portfolio Investment is most risky when you put all your eggs in one basket. For example, if all your investments are in property, and the property market crashes, you could stand to lose a fortune. However, by diversifying your portfolio with assets such as gold, you can safeguard a portion of your investments. 3. Gold is a physical asset Many investments take place in cyberspace. Prices rise and fall, you make and lose money, without ever seeing, with your own eyes, what your money is actually getting you. With gold, it’s physical and substantial. You can hold it in your hands. You can store it in a safe. This brings a certain sense of security and confidence in your investment. 4. You can keep your gold investment private In the investing world, a lot of purchases are common knowledge. Certain ownerships can be researched by anyone, which can make it hard for you to keep your portfolio confidential. With gold, there is nobody else involved – no shareholders or third parties. This makes it easy to buy and store gold in secret – perfect if you want to keep your assets close to your chest. 5. You don’t have to be an expert to invest in gold When working with stocks and shares, you need to have some level of intuition or expert experience to make the most of your money. When buying property, you need insight into the market and some ability to predict whether house prices are going to rise or fall. With gold, you don’t need any experience or prior knowledge. You can go into a gold investment fairly securely without needing to be an investment pro. 6. Gold doesn’t face taxes Due to the EU Gold Directive of 2000, investment-quality gold is exempt from UK tax and stamp duty. Be prepared for investing in gold While there are many upsides to investing in gold, every potential investor should also be aware of the potential downfalls, such as:
How to invest in gold the right way Financial experts give the following advice to first-time gold investors:
And most importantly of all, if you are not an expert investor, always speak to a professional broker or financial advisor before making a high-value purchase of gold or any other asset. Your personal circumstances will largely influence which investments are right for you. This blog has been brought to you by KaratBars - https://philipspeed.weebly.com/
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AuthorPhilip Speed is a lover of all things gold, from its history and place in myth to its role in our modern economy. As a representative of Karatbars, he knows why you should be saving in gold. ArchivesCategories |