Gold is one of the long lasting precious metals. Gold is widely appreciated for its beauty in the form of art, jewelry, gifts, and mementos. It sounds good as a best hedge against market volatility. Gold is known throughout the world for its demands and values. Because of its high liquidity, it is easily converted into cash anywhere in the world.
Following are the ways in which owning the Gold helps you in the long term:
1. Beating the Inflation
Gold is considered as a best hedge against inflations because its price tends to rise when the cost of living increases.
2. Gold is a Safe Haven
Because of gold’s upward trend in the face of uncertainties in the financial markets, gold is considered safe haven asset to hold. Gold is among the best investments for securing future. Gold is one of the most widely traded products in the commodity market. Its price is positively influenced by the market forces that fuel inflation. That’s why we have given it the status of “Safe Haven” i.e. it is favored over other assets when the economy looks weak.
3. Gold Lasts Forever
Gold is a metal that never erodes or oxidize and is thus considered being “timeless.” The gold that we use in daily life, in jewelry, coins etc. has mostly been alloyed, or combined, with other metals to make it stronger.
4. Gold as an investment
Gold is among the best precious metals. It is known for wealth, status symbol, and it usually has an edge over all the other commodities. Value of gold usually goes up in the long term and thereby it is also known as a safe investment. It is considered as an effective investment which helps to reduce investment portfolio risk.
5. Under Value of Gold
The best time to own gold is when the gold is underpriced. Buying gold when prices are low is a good decision.
6. History of Holding its Value
Unlike paper currency or other assets, gold has maintained its value throughout the ages. People pass on gold from one generation to another to preserve their wealth.
7. Gold is Money
Gold is serving as money in certain geographic locations. For instance Turkey, Turkey is open to use gold as a form of money and levies no taxes or restrictions on it. Their banking sector openly accepts gold and views it as money allowing for a range of services like gold accounts, gold jewelry to be turned in for cash equivalents in a bank account, gold ATMs, and other services.
8. Gold against Deflation
When overall price decreases and due to that inflation rate becomes negative we call this situation as Deflation. When all assets lose their value, gold still shows great resilience and does a better job than most other asset types in holding its value. You can protect your position against deflation.
9. Gold for Industry
Gold has in fact many uses in the business world which we highlighted in detail in our “uses of gold” (we need to embed a link here) post. Gold is irreplaceable and used in numerous fields like awards, Aerospace, Medicine, Computers etc.
10. Gold for Status Symbol
Because of its appealing nature, gold also has a powerful impact as a status symbol. There are many people who wear gold as their status symbol.
DISCLAIMER: The views expressed in this blog are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication.