12 Most Important Reasons For Owning Gold

12 Most Important Reasons For Owning Gold

Gold has more benefits than at first it seems. In this article we look at some of surprising reasons that you should own gold.

1. Gold Hedges Against Inflation

The reason gold has increased in popularity as an investment choice is because it acts as protection against inflation. Throughout the financial crisis we have seen a staggering increase in those choosing gold as an investment of choice. This is because it does not bow to inflation (or worse still fears of inflation); it not only holds its value in troubled financial times, but actually increases in worth.

You Will Want To Read These, Trust Me

2. It Would Resist A Crash In Currency

If the worst were to happen and the US dollar crashed, gold would retain its value. What’s more, investors would see their gold shoot up in value.

3. The Worlds Strongest Emerging Markets Are Heavily Investing In Gold

If we are to look at two of the biggest markets out there: China and Russia, we see that they are heavily investing in gold. They are undertaking both importation and the sourcing of gold; this means that people thinking about investing in gold should do so now rather than later, as the reserves will only decrease.

4. India Is Mad About This Precious Metal

Gold in India is a must, they value the precious metal so much that they account for 20% of the world’s gold in ornamental uses.

5. America’s Gold Reserves Seem A Little Murky

Reserves in America may be in trouble, not only is it thought that personal gold reserves are in peril, but as the Central bank has most of its gold held at Fort Knox, Kentucky, as well as the Federal Reserve Bank, New York then there has been suspicious activity. Namely there is a question of just how much of it is being held in these places.

Many critics are arguing that the official statement on how much gold there is may be deliberately misleading people.

6. New Gold Is Becoming Rarer And Rarer

Mines and reserves are becoming depleted. Thus it is becoming harder to find and in shorter supply.

7. Mining Of This Precious Metal Is Increasing In Expense

Because gold mining is becoming more expensive, the price is being pushed up further.

[Read More: The Epic Guide On How To Buy Gold Bullions And Bars]

8. It Is Ideal For Portfolio Diversification

Any investment adviser worth his or her salt will advise you of the benefits of portfolio diversification. Gold should serve as an important investment in any portfolio.

9. It Is Safe From War, Terrorism And Natural Disaster Risks

The risks that these factors pose to an economy should not be under estimated, gold can provide insurance against these factors.

10. Deflation Is Irrelevant To Gold

It not only hedges against inflation, but perhaps more importantly, it is not affected by deflation either.

11. It is Physical

Because it is physical, an actual object, it is regarded as having additional value to, say a bank account, or stock market investments.

12. Gold is Considered A Steady Investment

This precious metal has seen a continual increase in value since the year 2000; industry critics and experts state that they do not foresee this changing.

photo credit: digitalmoneyworld

The following two tabs change content below.

Mike

I love helping people improve their financial situation. I hope that you find here information that will change and enrich your life! Feel free to leave comments, recommend my articles to other people and like this site on social networks. Thanks a lot and take care! This site is for INFORMATIONAL AND ENTERTAINMENT PURPOSES ONLY. Do your own due diligence and seek professional advice when you invest. I get lots of comments on my posts and I can't validate the facts stated there.

Latest posts by Mike (see all)

  • MillyM

    You are absolutely right! Gold does not rust, does not decay, and it remains both precious and rare. Until the day that humanity mines asteroids as a common business practice there will be a truly finite supply. Many people do not realize just how rare gold actually is.

  • Amanda

    I am trying to educate myself on Gold and I have found all the stuff on your site very useful.