Five reasons why it is the right time to invest in gold

Five reasons why it is the right time to invest in gold


You need to invest money wisely - any successful entrepreneur will tell you this. Keeping it at home as a fixed amount is the worst thing you can do with your money holdings. But investing in the first investment project that comes across is also not recommended, because many types of investments are associated with great risks or require a lot of experience from the investor.

Gold remains one of the oldest investment option that has not lost its relevance. Today, of course, other types of investments are also very competitive to it: real estate, intellectual developments, cryptocurrencies, securities. But it was gold that was and remains one of the main values on the planet. Is it worth investing money in it? Of course! Here are 5 reasons why gold remains a perfect investment.

Reason 1: demand for gold

Despite the fact that gold is not used anymore as the main instrument in trade operations, the demand for it is very high. Gold is used at the state level and serves to secure the country's insurance reserve. It is used annually in thousands of tons for the production of jewelry. And, of course, gold is extremely necessary in industry, especially in high-precision and high-tech industries. Also, private funds that buy up the precious metal are in need for gold. Therefore, you can always sell your gold reserves, regardless of the situation on the market.

Reason 2: profitability

Gold is difficult to compare with other investments in terms of profitability: at first glance, it loses to the same securities or real estate, which you can rent out and receive a stable income even without playing in the market. But when you look at the long-term profitability from gold, it leaves behind other types of investments. The fact is that the gold market itself does not experience big fluctuation in price of this metal. But over the course of the last 20 years the price of gold has been slowly growing. A simple example: in 2000, 1 ounce of gold was 316 USD, in 2020 - already 2000 USD. That is, in 20 years its price has increased sixfold. So, if you want to get a source of income with a long-term perspective, choose gold.

Reason 3: crisis resistance

Even the most stable currency depreciates over time. That is, for a certain amount of money today you can buy a certain amount of assets, but after a year you will be able to buy much less for the same amount. Accordingly, investing in gold, you do not depend on currency inflation, and you can sell your gold reserves in a couple of years at a significantly higher price.

Reason 4: gold is a stable instrument

Did you know that even the most experienced traders, when the stock market crashes, seek to hedge themselves and invest part of their funds in gold? No wonder gold was and remains the main hedging tool, that is, insurance in case of a stock market crash. And this should also be taken into account when choosing a type of investment.

Reason 5: high liquidity of gold

Gold is not only always highly prized, it is also always in demand. And it is easy to convert it into money. Compare it, for example, with real estate: Selling a property is not an easy task, and it can take months, if not years, to complete the whole process. But you can sell gold instantly, either on any gold exchange, or directly here and now in the nearest bank, pawnshop or jewelry workshop. And the price for it will be quite high.

Gold is an excellent investment tool, especially if you are looking for long-term income or want to be flexible in your decision making. Buying gold bars is a great start for novice investors, because such investment will definitely not depreciate, and you do not need to monitor exchanges and stock markets in order not to miss the moment when your investment is no longer profitable. And in order not to make a mistake with a purchase, it is better to buy gold from trusted sellers, or even better - from manufacturing companies that carry out gold mining by themselves, such as Golden Way, for example. By doing so you can get gold first-hand.