5 Smart Rationales Why You Should Own Gold

5 Smart Rationales Why You Should Own Gold

Sparkly Gold is a sight to behold whether it is yellow, white, or rose in hue. Since ancient times, this precious metal has been revered for its value and robust history. It has been interlaced into many cultures for centuries. To illustrate, Greek mythology says that mortals cannot pass Tartarus (the Gates of Hell) if they do not bring with them any earthly treasure. The top choice even then is golden jewellery adorning the body.

Today, people continue to hold on to golden assets for various reasons. Even modern economies place a high value in this element, which is why it holds its worth. It is the metal that societies fall back on when times are tough because of their permanent intrinsic value. Since you should not put all your eggs in one basket, you need to branch out into other streams with this metal. Here are a few smart rationales why you should own this golden superstar:

5 Smart Rationales Why You Should Own Gold
5 Smart Rationales Why You Should Own Gold

Holds Its Value Extremely Well

Gold maintains its value throughout time, unlike paper bills, coins, and other assets. It is a good method to preserve wealth. In fact, since time immemorial, people have used gold to preserve and pass on their wealth from one generation to the other. It retains its sparkle and does not corrode or rust. Furthermore, it is highly malleable, which means it can be melted and manipulated when exposed to heat. As such, this element can be shaped into jewellery, figurines, and even coins.

Offers an Inflation Protection

Even when you trace historical data, you will see that gold offers you a hedge against the dreaded inflation. Prices of goods will go up with time, which means your cost of living also increases. As such, the value of money is not the same as it was a year ago. However, over the past decades, investors saw that gold prices increased even if the stock market took a dip and inflation was at an all-time high. When inflation weakens the power of fiat currency, gold has a propensity to rise along with other goods. It is for this reason that people like you are encouraged to buy gold, especially when money is losing its value.

Retains Value Even in Geopolitical Disturbance

Even during times of geopolitical disturbances and uncertainties, you can count on gold to retain its value. During this time, there is a commodity crisis. The tension escalates, and prices of goods increase. Even in times of crisis, gold will retain its value or increase its price per ounce. Studies and data indicate that the price of gold will even increase when the confidence in the government is low.

Leverages Increase Demand

The rapid growth of emerging economies equates to amplified demand for gold. Apart from being held in high esteem when they are made into fine jewellery, gold has grown among both avid collectors and investors. The former collects all forms of gold because of its excellent qualities, while investors hold onto it because it is an amazing investment class. Today, the SPDR Gold Trust has become a large ETF in the US. It is also known as one of the biggest holders of gold bullion. As such, you should leverage this trend so you can reap its benefits.

Proffers a Great Avenue for Diversification

Finally, gold offers you an avenue for diversifying your investment portfolio. As a rule of thumb, you must not place your investments in the same areas, so when one aspect tanks, other aspects remain secure. Gold provides you with that opportunity to invest in other areas that are not closely related. As a smart investor, you find a broad range of financial instruments to reduce your risks. This precious metal provides you with that golden opportunity.