Why is it Essential to Invest in Gold?

Of all the precious metals on earth, gold is the most popular investment.  Generally, investors worldwide purchase gold as a hedge or harbor against economic crises including inflation, investment market declines, and the burgeoning national debt.  But with various gold price predictions, many neophytes in the investment market are thinking whether investing in gold is still a great idea.  The answer to that question is a resounding ‘Yes!’

But before you jump into buying gold in banks or online, it’s best to research ahead what’s in store for you as a gold investor.  First, only purchase gold from trusted brands such as Bullion Vault.  If you invest in gold at BullionVault, you get worldwide access to the professional bullion market and benefit from the low cost buying, selling and storing gold and silver services.  Also, Bullion Vault is one of the most secure bullion storage facilities in the world so you can be sure that you’ll get low insurance costs.  Currently, it caters for more than 41,500 users and handles $2.2 billion worth of investments.

where can you find gold Why is it Essential to Invest in Gold?

80x15 Why is it Essential to Invest in Gold?
An Ounce of Gold by Celeste33, on Flickr. This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

While gold is no longer in the forefront of everyday transactions, it still plays an important role in the global economy.  Presently, organizations such as the International Monetary Fund (IMF) that fosters global monetary cooperation are holding approximately one-fifth of the world’s supply of above-ground gold.  If there’s no continuous circulation and maintenance of gold, organizations such as the IMF and even central banks worldwide would experience slow turnovers which could lead to a global financial crisis.

For your portfolio, gold will play as a diversifying investment.  Regardless of whether you are worried about inflation, a declining US dollar, or even protecting your wealth, it is clear that gold has historically served as an investment that can add an expanding component to your portfolio.  Also, unlike paper-denominated currencies, gold preserves wealth throughout thousands of generations.  While money goes down in value, the price of gold doesn’t crash as quicker as cash.

The history of the gold standard, the role of gold reserves in central banking, gold’s low correlation with other commodity prices, and its pricing in relation to fiat currencies during the 2007-2012 global financial crises, suggest that gold behaves more like a currency than a commodity.  So start investing in gold bars or even coins from the United States Mint for a stronger investor portfolio.

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Comments

  1. I don’t know what it is, but there’s just something cool about owning gold as well. One other option you can use to invest in gold is simply an exchange traded fund (ETF). One example is the iShares ETF with the ticker IAU… 0.25% management fee though.
    Dustin Small recently posted..Chipotle Mexican Grill (CMG) Analysis & ValuationMy Profile

    • Hi, Dustin. I am very much interested in investing in gold. As an alternative, your suggestion in investing in ETF is good. Thank you for sharing your expertise. I admire how knowledgeable you are in investing.

  2. While I’m not 100% sold on the idea of gold as an awesome investment – I definitely agree that it would be cool to hold. I have a friend and he has been investing in gold for YEARS and it has certainly been a great investment for him – the value has increased DRAMATICALLY since he started. Also, it’d be pretty cool if you could pay for things with it – instead of walking into a car dealer with a check, just walk in with a nice chunk of gold – how sweet would that be!??
    AB
    Aspiring Blogger recently posted..Net Worth Update – December 2012My Profile

    • Sweet, indeed. :). I have no idea how the price of gold fluctuates. Did your friend experience significant price decreases? What I’ve heard is jewelry is a good investment, too because its price barely drops and is easy to sell. That is another topic, though.

  3. Gold has been and always will be an investment that will expand any investors portfolio.
    Buy Gold Coin recently posted..Buy Gold Coin – A Smart Investment PlanMy Profile

  4. I hope you’ll keep up the amazing work here, this is a truly great website.

    • Hi, Invest in Gold. What a catchy name you have. It’s golden. Thank you for your encouraging words. They mean so much to me especially now that I’m working very hard to push Money Soldiers into greater heights. See you. Investing in gold is always an excellent investment decision. You may want to start investing now by clicking my Neto Trade ads on the home page.

  5. Every investor should keep gold investment in his/her portfolio because gold is one of the the best investments. The value of this precious metal never depreciates and it proves to be the most secure investment in this era of economic instability.

    • What a great tip you have there, Rose. Thank you for sharing it with the Money Soldiers tribe. I do would like to invest in gold but I have keep my finances in order first, for I am in the midst of drastic changes in my personal life which might have a big effect on my financial health.

  6. The Federal Reserve’s refusal to the Germans on an audit of their own gold, may inflate the prices of gold in the near future. This is a good sign for investment in gold right now.
    gold wholesale recently posted..Jim Sinclair — Bank-Organized Strategy To Keep Gold Under $1,600My Profile

  7. At present world is going for gold investment specially physical form of gold i.e gold coins, gold bars and gold bullions which offers incredible returns that investors love.

  8. Dear Arnel,
    I liked what you said about Also, unlike paper-denominated currencies, gold preserves wealth throughout thousands of generations. While money goes down in value, the price of gold doesn’t crash as quicker as cash.
    Continue this kind of articles because they are very good and useful, congratulations.
    Gold Investment recently posted..Commercial Pilot SalaryMy Profile

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