In times of uncertainty and economic instability, buying gold has never made more sense.
Nowadays it has become difficult to trust banks and the world economic balance, what gives security is something that has the ability to maintain a value over time, something that can be considered an essential part of everyone’s investments. With the famous yellow metal in greater demand than ever, there are many reasons why buying gold is a wise investment.
In this article Vocea Europei tells you why to buy gold and if you want to always be updated with the latest economic news visit the section dedicated to Stiri Economie
It is a safe resource
With the global crisis and the resulting insecurities, more and more people are looking to move towards alternative investments.
Over time, a constant security has been the purchase of precious metals such as gold, which has always been used as a currency of exchange in very critical historical moments. Gold offers as security the certainty of having something physical and precious in your portfolio.
In summary, gold can be used effectively as a shield against other economic factors such as inflation and deflation, interest rates, stock market jitters and currency problems. Importantly, as a highly precious metal, its value is recognized internationally regardless of where you are in the world.
An additional convenient positive aspect is that gold bars and gold coins can be carried with you easily, wherever you go.
It’s not just a saying that it’s never a bad time to own gold. It is a physical asset, a timeless asset, an asset that cannot be devalued the way money can be paid by the government simply by deciding to print more through QE (monetary easing). Even in the most extreme and unlikely scenario that the banking system faces collapse and paper money loses its value, gold bullion, especially small units of gold such as gold coins, could be used as liquidity high flexibility.
Protecting your assets is certainly a priority for anyone who wants to have future certainties. Investing in gold should be viewed primarily as a low-risk security asset for you and your family’s future.
Potential profits should not be the main reason for investing in gold. Investment gold should be seen as a non-speculative, safe and long-term method of safeguarding your capital. Owning gold offers a unique and attractive element to your wealth: the opportunity to lower the risk potential of the uncertainty of other investments such as stocks, properties and currencies, which may not have certain outcomes.
Control part of your assets
If it’s not a tangible good it’s not real! The physical ownership of precious investment metals determines full control over them. Instead of trusting third parties and entrusting your money to a financial advisor, or even leaving it in the bank, keeping your gold at home or in a safe deposit box gives you true control, discretion, ownership and responsibility over what you you own. This control can only be achieved through the purchase of physical gold, not paper gold or electronic gold (ETF).
Control also extends your choice of how, where and when to liquidate part or all of your portfolio at any time to hundreds of bullion dealers willing to buy your gold instantly.
What is the future of gold?
The price of gold began to rise sharply in August 2007. After a peak in 2011 due to a major financial crisis, the price of gold appeared to slow its rise if not plummet. Nonetheless, in recent years it has reached levels of safety where the constant is continuous growth over time. Despite prices in late 2015, the price of gold soared in 2016, driven by economic and political uncertainty caused by events such as the result of the UK’s Brexit referendum and the US election of Donald Trump. While the market price tends to rise, investors in other markets experience financial and political tensions differently.
The question is: what happens next? While historical data shows that the yellow metal has outperformed other large investments over the past year, there are no guarantees that this trend will continue. This is why the right amount of research and the purchase of gold should be seen primarily as a safeguard for the future, and secondarily as a profitable investment. With the belief that the current economic difficulties may persist in the long term, then the price of gold will likely remain high and continue to rise.
Demand for Gold: global demand reaches new peaks
Another factor to consider is demand. With global gold reserves lower than ever, overall demand in many countries is higher than ever, many experts predict that the metal will remain a very valuable commodity for many years to come. Indeed, new figures released by the World Gold Council in the third quarter of 2015 show record demand for gold bullion from all investors seeking to preserve wealth, diversify their portfolios and seek strong returns.
With global demand for gold jewelry plummeting and the technology sector static, gold investments continued the upward trend experiencing growing demand particularly in China and India. Gold investment choice in China has grown by 69.5% in 12 months, with 528 tonnes currently held by private investors making China the largest gold-owning nation in the world, followed by India which has saw a 34% increase in ownership to over 409 tonnes.
However, not only have China and India seen notable growth in gold investment, but European countries such as Germany, Switzerland, Turkey and France have also seen record increases in consumer demand. Among European nations, France and Turkey have seen the largest increases in demand for gold bars and coins at over 1,600% and 80% respectively, however it is Germany’s 31% increase in gold ownership that makes it the most impressive gold nation in Europe with 154.2 tons.
Never before have consumers and central banks seemed more interested in purchasing gold.
Don’t make the mistake of thinking you’re not ” rich enough ” to buy gold. In some countries such as Germany, India and Russia, which have suffered an economic collapse of which they still have vivid memories, purchasing and owning gold is a very common way of protecting and preserving one’s wealth.
It is indeed advisable to own between 5% and 10% of your liquid capital in gold bars and/or coins, whether you are a modestly wealthy person with some savings or a multi-millionaire, it makes a great addition to your investment portfolio and It acts as the ultimate insurance against turbulent economic times as well as an always-available Plan B.