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.
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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.
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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.