The precious value of gold has been proven throughout history. Smart investors would always keep some gold in their portfolio. For centuries, this method has also been very popular among wealthy governments and individuals due to gold’s ability to maintain their value. In this article, we are going to tell you why it is a good idea to keep gold in your portfolio. Below are the top 9 reasons why Gold is a good investment choice for the future.
1. Gold will always have value. Gold is a precious metal that has stood the test of time as far back as 500 B.C. The ability to maintain their value is what makes gold so valuable even after all those years. Although the price of gold is dropping in this current bear market, don’t be worried. This is the perfect time for you to buy gold.
2. Because of inflation. Some of you might wonder why gold is good in times of inflation. This is because gold’s value has the tendency to rise along with the level of inflation. This has been proven in history: in 1946, 1974, 1975, 1979 and 1980, inflation saw an all-time high, but gold’s return was 130%! The current gold price is low, so buy some to gain big profits when inflation level rises again.
3. Current gold price is low. Now is one of the best times to buy gold because its price is now just over $1,300 per ounce, which is $500 lower than previously. Take advantage of this.
4. Portfolio diversification. Adding 10 to 20% of real gold to your portfolio can help diversifying your assets. Remember the wise saying, ‘Never put all of your eggs into one basket.” In times of economic turbulence, paper investments normally see a tragic decline, whereas gold can maintain its value. Nevertheless, don’t be tempted to buy 100% gold, because diversity is always smarter.
5. Protect your assets in crisis. The value of the US dollar depends largely on the current economic condition. For instance, the Great Depression in the 30s led to the plummet of the dollar value. However, gold’s value then rose to an all-time high. Today’s economic certainty makes it even harder for us to predict whether and when another currency crisis would occur. Nevertheless, gold will help you survive any future currency crisis.
6. High liquidity. All you have to do is do a little research to find out where you can sell your gold for the best price. Several markets offer better price for specific types of gold than others.
- Gold jewelry: Best pricescan be found at used jewelry stores, eBay or other retail outlets. Remember to sell the beauty and craftsmanship of the jewelry as a whole, not just the gold.
- Numismatic or collector coins: Look for famous dealers at The American Numismatic Association.
- Gold bullion: these coins and bars are issued by the government and come in standard weights and purities, so the selling prices are pretty straightforward.
7. Governments are in it, why don’t you? It is a good sign when governments around the world are investing in large amounts of gold. This means that either the governments predict an increase in gold demand or they are just preparing for aimminentcrisis. In 2013, China consumed over 4,800 tons of gold and the number keeps increasing. Dubai is setting up a new gold refinery capable of processing over 1,400 tons of gold. All these indicate a positive demand for gold. Why else would governments spend money on gold if they did not see a future economic benefit?
8. Gold can be sold anywhere. This feature makes gold even more liquid: you can sell it anywhere in the world to convert it into cash.
9. Price fairly stable. Unlike the dollar whose value is declining, gold keeps its intrinsic value as a piece of tangible valuable property. Its value only fluctuate according to the supply and demand and current economic conditions. Gold’s purchasing power was proven to survive in harsh periods of inflation or deflation.
Smart investors would always add commodities such as gold and silver to their portfolios. It is, however, not easy to buy gold. You should only invest in gold that can be resold at a high value, such as the American Buffalo or Canadian Maple coin, which has a .999 purity level. Always do some research first as a gold investor. As a last reminder, investing in gold is smart because it helps you survive harsh economic conditions.
In case you are looking for a reliable Gold IRA company, our suggestion would be Regal Assets. This is a leading precious metals company that can fully address all of your concerns. At Regal Assets, you will be assigned with a financial expert who will consult you on various investment options. Unlike other companies, Regal Assets won’t give you some high-pressure salesman to force you into making unwilling investments.
Regal Assets is also a great place for new investors in gold and other precious metals. You just need to give the company a call, and you will be assigned with a unique representative who will guide and assist you from there on out. Regal Assets take pride in putting customers and their comfort first.
If you have any questions, don’t hesitate to call Regal Assets and let them take care of you. We have also done an in-depth Regal Assets Review here in case you need additional information. The company received an A+ rating with the Better Business Bureau, and was ranked #20 on Inc. Magainze’s list of 500 Fastest Growing Privately Owned Company in the Financial Services category in 2013.