5 Benefits Of Gold Investing
When it comes to considering investments, gold investment is not always high on most people’s list of potential investment opportunities. Gold investing is though gradually once again becoming more mainstream.
Let’s take a closer look at the most helpful benefits that gold investing may provide, so that you can make a more informed decision regarding your investments.
- Protection Against Inflation and Currency Devaluation
Gold investing, has the potential to provide added protection against the consequences of persistent currency devaluation associated with inflationary policies pursued by governments and central banks. Let’s say that you have placed $10,000 in the bank and you have left it to collect interest, figuring that no harm could possibly come your way. While this may seem like a great idea on paper, the money is not going to have the same purchasing power as it did when you placed it in the bank. Inflation eats away at your purchasing power on a daily basis. Gold is one important asset that throughout history has provided added protection against inflation.
- Insulation Against Financial Crises
Banks are far from infallible and if you partake in the investment of a tangible asset such as physical gold, you are keeping yourself better shielded from the consequences of potential collapse of banking institutions by retaining an asset outside the financial system.
- Avoiding International Financial Crises
Throughout history investors have been exposed to the risks of financial crises and financial disruptions. When a financial crisis takes place, it does not necessarily originate or start in the country where you reside and while it may seem unimportant to deal with the risk of a financial crises starting abroad it is a reality that you need to consider . That means taking the time to contemplate the potential benefits of gold investing. The single most important characteristic of gold is that it has no counter-party risk.
- Gold’s Historic Precedent
Gold has been regarded as a store of wealth for thousands of years by almost every single culture in history. No other asset has such a historic record underlying its potential as a future long-term store of wealth. Nowadays, despite the increasing reliance on paper and digital storage of wealth such as securities and cryptocurrencies such as bitcoin, gold is still regarded as an asset of great value. It is going to a take significant transformation in cultural beliefs and traditions to ever change this inherent perception.