Gold Bullion: 11 Foolproof Strategic Investment Reasons
clearly, you may be asking why is gold so important or precious and what is all these noises really about? Well, the brain behind my write-up is that l doesn’t want you to be ignorant of your financial/investment/retirement future and planning. You must not continue to leave in the dark-age in matters concerning gold and precious metals, consequently I present before you infallible reasons why gold must be part of your investment combo.
1. Assets diversification. When pondering on investment vehicles, usually an old adage comes to mind “don’t put all your eggs in one basket”. Although some critics say put all your eggs in one basket and watch over it, good luck to them. The reasonable and savvy investors must ensure that at the minimum 5% of their investment portfolio is gold and precious metals.
2. constant existence of gold. The fact is that gold out-leaved human age and as long as the world remains, gold will be in perpetuity. Gold is superior to other character, products or investments (buildings, vehicles, stocks, bonds etc.) because the value of these similarities can erode with passage of time and prevailing economic occurrence. Take for example, the global stock market saga of year 2008; also you need to incur maintenance cost in order to keep them in good shape.
Gold however, the value is not deteriorated neither does it oxidized irrespective of the number of years we are considering.
3. shortagen of gold. Gold is finite in supply. Statistics revealed that annual global production of gold is about 2,500tons and the worth of gold in the complete world is estimated at 9trillion US dollars. You better buy into gold now instead of regretting in later years.
4. position symbol. Without mincing words, gold is highly eyes alluring and have powerful impact on human character/race. In fact, China and India are well known for the high value they placed on gold as their store of wealth, so their wealth is expressed by the quantity and quality of gold you possessed.
It is inbuilt in human character to want to belong to the highest investors/social/political class, so the worth of the gold you possessed in some society will dictate whether you belong to this ostentatious class of elites.
5. Counterparty risks. Gold is absolutely excluded from counterparty risk. The said term method you are putting your faith on the ability of the other party to a deal/contract to perform at the due date. The examples of buying stocks, employers and employees will explain better.
You buy stocks from the capital market in anticipation of dividend, price appreciation and cash at later year. It is possible that the stock market may collapse before your target date or the case of employee working for an employer, it is expected that at retirement the employer will pay gratuity and pension but the employer may go under before retirement. All these scenarios cannot happen to gold because it is tangible, in your possession and you can easily transform it to cash to better your lots.
6. Substitutionary insurance policy. The purpose of insurance policy is to put you in the exact financial position you enjoy prior to the loss. Gold can also play the same role if you have same. At the time of national crises (war) like that experienced in Africa – Liberia and Ruwanda, 1Kg of gold can restore a person to life of conveniences again.
7. Bull market (gold). When you read any guide or advisory on commodity or security, disclaimer is usually the beginning of such and the summary is that “past performance is not a guarantee of future consequence”. consequently, gold is exempted from that pattern and since the beginning of the new millennium; gold has been on bull-run with double digit gains.
8. keep up in a place against deflation. Of course, an open secret that economic recession is now a global occurrence, the ever increasing debts of nations (USA and UK for example) could potentially consequence to deflation with extreme economic impacts. The aftermath is that value of assets will be deteriorated but gold has resilience and perform better in holding its value irrespective of economic challenges.
9. Geopolitical risks. Wars, terrorism (USA – unforgettable 911), natural disasters and other allied perils characterized the global society today. At the time of war for example, safety and individual’s survivor is the major concern, assuredly there will be economic paralysis and downturns. The major assets; real estate, financial instruments, other similarities and cash money will be next to useless in value. During such time, gold provides peace of mind and the value remains continued.
10. Store of value. Historically, gold has thousands of years with backup track records as the best store of value. Irrespective of economic and global situations (technological changes, trends, development etc.) gold possessed the characterize of acceptability and constancy of value. consequently, for the safety of your investment, retirement and to pass your assets to next generation, gold is your best bet.
11. Gold is money backer. History tells us that first gold coins were minted and put into circulation by 550BC; gold has been longest and lasting form of money. Intrinsically, till tomorrow sun shall rise, gold keep a form of money-backers.
In view of these green lights, a stitch in time saves nine. Kindly click on the link below to start your gold investment or 401K.