Gold comes with some unique benefits that are hard to duplicate with other investment vehicles. Many people are turning to this sought-after commodity to diversify their portfolios, but gold also provides a more tangible experience that brings legacy builders a sense of satisfaction. Gold has always represented one of the most stable investment vehicles, but there is a litany of other benefits that gold investors can enjoy.
Below, Oxford Gold Group lists a few of these golden opportunities for consideration.
The first indication of humankind’s preoccupation with this shiny metal was around 3000 BC in Ancient Egypt. Gold has since evolved alongside the civilizations that have drawn it from the earth, from ornate statues to currency. Gold in all its forms has been a prevalent part of every successful nation across millennia, an almost immortal presence through the ages.
Superpowers throughout history have increasingly used gold as a trading tool, as well as an easy way to amass wealth and power. Gold has had an undeniable influence on how society has developed, including its commercial or trade features as we know it. The precious metal has also greatly influenced how people define wealth, and it is still the standard today.
The longevity of gold is undoubtedly a large part of its success, but it is not the only characteristic of gold that propels it to the top of the charts as an investment choice. Gold has taken thousands of years to come this close to perfection as an investment vehicle, and it has some obvious benefits. Oxford Gold Group’s gold experts list fifteen to help you decide whether gold might be for you.
Gold is one of the few investments that can stand firm against inflationary pressures without much effort. When stocks and bonds plummet, gold’s value remains stable. Gold is like a financial security blanket for savvy investors, hedging the risk of loss by diversifying the portfolio.
When paper or digital money loses value in an inflationary scenario, gold is impervious. Inflation is a spike in the cost of goods and services across the board, where rising prices have the effect of reducing how many goods or services one dollar can buy. The US dollar and other currencies relying on it suffer under inflation because the situation effectively erodes buying power.
Stocks and other financial instruments typically lose value as the currency weakens, but gold does not suffer the same fate. The precious metal cannot lose its intrinsic value, even when its price fluctuates over the years. It’s still worth its weight in…gold.
For example, one US study measured the US inflation index versus gold prices over an eight-year period. It found that the inflation index was around 5% during this period, whereas gold prices increased by 14.9% on average. If you want to invest in something that won’t lose its power as prices rise, gold is ideal.
If you have ever had to liquidate an asset, you will know how stressful and complicated the process can be under pressure. Gold investing removes this hassle, streamlining buying or selling transactions with immediate access to either gold or cash. You can sell it whenever you need to, in any amount, and it does not require the same paperwork you will find with real estate or other asset sales.
The simplicity of buying and selling gold helps investors to manage this investment easily, but gold’s universal value is also highly attractive. Every country recognizes and accepts the worth of this precious metal. It is a valuable asset that people worldwide will value, so you will always be able to trade it freely.
Gold coins are attractive for another reason: they are collectible. These coins appreciate every year, not only for the gold content of the coins but for the tremendous demand from the world’s vast number of coin collectors. This appeal is part of why gold coins are such an excellent investment for building generational wealth.
Historically, gold outperforms all other investment vehicles. The precious metal has enjoyed huge demand since ancient times, and its role in the trading landscape has been a significant one. While historical performance cannot necessarily predict future performance, gold still carries these favorable traits into its modern position of prominence.
The use of gold in technology has shored up its importance in the economy and various industrial applications, as well. The increased demand is very likely to continue into the future, so history’s lessons are likely accurate regarding gold’s attraction as an investment vehicle.
There is an incalculable amount of gold still to be mined across the world, but depletion of this natural resource will be the end of its supply provisions. Gold is a finite resource with no equivalent that can be artificially manufactured, which means this commodity offers investors low volatility (demand remains constant). Its finite nature means that, even when supply fluctuates, there will never be an overproduction of gold or a significant drop in its value; it will only become more valuable.
While gold’s value will sometimes increase exponentially, it will never decrease to the point of becoming a devalued instrument. Gold withstands events like natural disasters that have tremendous effects on other investment vehicles and whole economies. These events occur with alarming frequency worldwide, and it is not a stretch to plan your financial portfolio accordingly.
Imagine if you have stock in an oil company obliterated by a natural disaster—it would be the end of that company and your entire investment in it. Broken systems may take months to come back online, as demonstrated by the World Trade Center after the 2001 attack. Fire incinerates cash, but your gold will always be right where you left it if you store it safely.
Counterparty risk is when your investment’s success hinges on another party. Oxford Gold Group’s experts advise using gold as a hedge, especially against the following counterparty risks:
Many things go wrong with traditional investments, and most events will be out of your control. Gold delivers the antidote: it gives investors complete control. Gold also holds its value through disastrous market failures and major fluctuations in the economy.
Don’t haggle; just invest in gold. It offers a set price based on the market’s spot prices at the time of purchase or sale. The price you pay is the same as the one you saw when you placed the order.
Gold is an excellent way to balance a portfolio’s overall risk. You can add a layer of protection with gold investing that does not “sway” when the markets are in motion. Gold investment is a standalone investment vehicle that makes it easier to mitigate risks when you hold more volatile investments.
There are some tax advantages to buying gold. For example, there is no VAT on UK Sovereign and Britannia coins because they are currency.
Gold coins and gold bars often feature as heirlooms and a symbol of family wealth that can benefit future generations.
A lot of investors worry about the future of paper money, and gold is still a viable currency in many parts of the world. If there were another banking crisis, gold could become the only recognizable form of currency or global form of payment for goods and services. While most investors do not buy gold with the intent to use it as currency, it is nice to know that it provides options if bills were to lose all value.
The final benefit of gold investing is the reason why so many investors give it due consideration: it brings peace of mind. The psychological benefits of investing in gold are easy to miss in an evaluation of this precious metal, but it is no small thing to feel like you have made a wise investment choice for life and legacy. Diversifying your portfolio with gold brings tremendous control over how you want to manage your financial affairs, and that’s something well worth celebrating.
Diversifying a portfolio is one of the best ways to protect and grow your wealth. Gold provides a low-risk investment opportunity with plenty of potential benefits, not the least of which is peace of mind about where you’re going in life.
INSIDE THIS INVESTMENT GUIDE YOU WILL LEARN:
• How Gold & Silver can protect your savings & retirement accounts
• Types of Gold & Silver products available for Home Delivery
• How a Gold & Silver IRA can protect your Retirement account