Should I Invest in Gold?


Precious metal storage

When the world seems topsy turvy and it is difficult to predict what is going to happen next, it can be challenging to know what to expect from the future. When the world seems uncertain, the best thing investors can do is to return to the basics. The basic investments of gold and other precious metals. Investments that have proven over the years to be commodities that hold their value, and in many cases, provide a substantial return when traded at a future date.
Why Individuals Should Invest in Gold

  • It protects the value of money Gold, like other precious metals, is a tangible asset that cannot be printed at any government’s will. As a result, this investment protects against inflation and currency devaluations.
  • It performs under pressure Gold is resilient. Unlike stock, which can lose its value if the underlying company goes out of business, this investment has no credit risk.
  • Its long term outlook is strong Demand for this precious metal continues to outweigh supply. For example, mine production accounted for less than 75% of demand in 2014. Additionally, central banks are no longer the only net sellers, so the remaining demand is fulfilled with recycled gold.
  • It is easier to purchase than most people realize Investing in precious metals is not complicated. In fact, in many ways it is as easy as investing in stocks. Investors can also purchase physical bars and coins. The purchasing alternatives continue to expand. Additionally, the market is highly liquid; it is easy to buy and sell on demand, including bullion online platforms and at some of the world?s largest banks, many of which are available 24 hours a day.

By following current events it is evident that precious metals can play an important role in an investment portfolio management strategy. Mine production, trade flows, and central bank information research only tell part of the story. It is also important to understand changes in supply and demand and global trends. Once you do the research you realize that the case for this precious metal today is as stong as it has ever been. In fact, studies continue to show that portfolios with bullion bars tend to do better than portfolios without bullion bars.
Gold is mined in every continent except Antarctica. U.S. mines alone produced 211 tons of gold in the year 2014. Its trade routes cross the globe. It is a great investment opportunity because it has been in circulation for centuries and is a real commodity that will last for many more. Did you know that 75% of all gold in circulation has been extracted since 1910?
The role for gold in a portfolio will continue to be as a trusted diversifier. Best of all, many opportunities are available for long term investors to bring gold into their portfolios. America by itself circulates or deposits over $7.6 trillion worth of gold. Maybe it is time that you considered this precious metal investment opportunity.


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