Why Do We Invest In Gold

For thousands of years, gold has been money. In the last century, this all changed. The introduction of a fiat currency into the world has changed the way people see gold. Now, its just an “investment”. Gold has always been sought after for its elegance, ductility and its value. But most importantly, its ability to retain wealth.

Gold should form part of your portfolio of investments and during increased economic uncertainty, should be seen as your primary investment. Here are some of the top reasons to invest in gold:

1. Performance: Despite not producing a dividend of any kind, gold is still an excellent investment vehicle. It has shown exceptional year on year performance relative to the stock exchanges of the world and is still considered a top performing asset.

2. Protection: Gold is the ultimate hedge against inflation. It also protects against deflation and is the last resort against a global economic collapse. In difficult economic times, gold is seen as the key indicator of financial uncertainty. The higher gold increases in price, the more worried investors are in stocks and bonds.

3. Accepted: Gold is universally recognized and traded in all countries.

4. Divideable: Gold can be broken down into equal parts very easily.

5. Physical: Unlike shares, bond, futures and other intagible investments, gold is physical and can thefore be seen and touched. You don’t need a computer to trade gold.

Before you invest, always consult a professional.