Invest | Great Reasons Why We Should Invest In Gold

1. Gold resists inflation. Gold is the best inflation hedge. Inflation is an economic phenomenon caused by an exaggerated supply of money. When paper money are printed in excess, they lose their value since they are not backed by a commodity. Their value is given only by government regulation. This is not the case of gold. Unlike paper-based currency, gold does not rely on the full faith and credit of the government. Therefore, you can store it and trade it whenever you want to. Despite all challenges, gold retains its purchasing power, even if the real value of most currencies is facing a decline.

2. Gold acts as an economy stabilizer. This precious metal is often used to keep steady the devaluation of stocks and bonds. Gold has the power to protect the value of a portfolio in times of economic and political unrest. It reduces the drive of governments to print money and exacerbate the debt crisis.

3. Gold has historical value. From ancient times, people realized that this rare metal is precious. So, they started to use it as a currency, which gave birth to real trade in many economies. Gold is still used nowadays to define the monetary units of some countries. In the Unites States for instance, a monetary unit is expressed as the number of units of gold per currency.

4. Gold can be easily traded. No matter in what form you buy it, you will always be able to sell gold immediately. This glittering metal is one of the most liquid commodities on market. This unique property of gold is made possible by the increasing demand for this commodity on the market. In consequence, there will always be persons willing to purchase your gold if you want to sell it. Last but not least, it is important to know that the value of gold is not determined by investments. This metal is dependent on its core value which increases every day.

5. Gold is great to diversify your portfolio. If you want to increase your financial portfolio, you should invest in gold. Investors that trade and deal in gold make a lot of money. There are many possibilities to invest in gold. Some of the most common are small gold bars, bullion coins, gold certificates, mutual funds as well as gold mining shares. Irrespective of the form you choose, the investment will surely pay off because gold will always be here.