Is Gold a Smart Investment

March 28, 2022

Investing is cool again.

Americans never stopped putting their money to a place where they could watch it grow, but investing has seen a spike in popularity in the past few years. This could be due to new technologies and options for investing like cryptocurrency. 

But this spike in investment popularity has made many wonders if something significantly more physical than crypto is a smart investment: gold. Gold has a strange relation to our current currency. Our currency was founded around gold, but we’re not on the gold standard anymore. 

So what does this mean for gold? Is gold a good investment? Should you invest in gold? 

Also Read: Best Tax Saving Investments Options Under Section 80C

Keep on reading for a perspective on this topic. 

Gold Isn’t Going Anywhere

No matter how much the price of gold fluctuates, the actual, physical gold you buy will never go anywhere. This works to gold’s advantage. 

This makes gold significantly different from other investments on the market. If you buy stock in a company, you can make some great money on it. However, a company’s market share plummets, you’re going to be out of money with nothing to show for it but a piece of paper saying you own part of the company. 

This is not true for gold. The market price of gold can hit rock bottom, but no one will ever take your gold away. Most likely, you’ll still be able to find someone who’ll pay a good price for your gold. 

Gold, in this way, is similar to art and collectibles. It has a value outside of its share in the market. You can melt it down and turn it into things, use it in pieces of technology, it has used. 

If you like to know that your investments are backed up by a practical purpose, we highly recommend investing in gold. 

Gold Will Survive Catastrophes 

The COVID 19 pandemic vastly impacted trust in the government all over the world. Even if you love the government, you have to admit that there’s only so much they can do to help you out. When disaster strikes, everyone has to be able to fend for themselves. 

Previously, one could make an argument that this was just paranoid thinking. But now, looking at how badly the world managed the COVID 19 pandemic, and how much unrest it’s caused, it’s not a far-fetched way to think at all. 

When governments fail and society comes tumbling down, on-paper investments no longer carry any weight. Your Robinhood stock portfolio won’t mean much if the internet connection goes out all around the country.

Gold, on the other hand, will survive catastrophes. If you keep your gold in a safe, secure space, you can weather every storm. Even if the price of gold goes down, you can rest assured knowing that gold’s price will shoot back up in times of peril. 

Gold Varies in Price

Even without a catastrophe, however, gold is still a good investment. You can look at the market for gold as similar to the housing market. Houses are also things you can invest in that have a real-world application. 

The gold market shifts between a “buyers” and “sellers” market. “Buyers” markets happen when the price of gold is down. This is when people are going to want to get their hands on some gold — they won’t have to pay nearly as much. 

“Sellers” markets happen when the price of gold goes up. With prices being so high, those who possess gold will be able to gain a good profit on their investment if they bought it for a low enough price. 

If you’re someone who likes playing the real estate market, then you already know how this fluctuation works. All it takes is to apply your skills to a slightly different world, and you can make a serious profit. 

Gold Can Be Passed On

Maybe you’re not in this to get rich, however. Maybe you’re not looking to invest to make a ton of money for yourself, but to give an advantage to those that will come after you. 

Gold is a wonderful investment for this purpose. 

Once again, stock options are just a piece of paper. They’re difficult to transfer over to loved ones and difficult to manage for people who don’t know the world of trading well. 

This isn’t true of gold. Handing off gold to a loved one is as simple as… well… handing it off! One of gold’s best uses is as a hedge against financial crises; if that crisis never it during your life, you can pass it on to your children to make sure it never hits during there’s. 

Gold Has High Liquidity

At the end of the day, gold is one of the best things you can invest in because of how easy it is to get out of. 

We understand that you might not want to keep your investment in gold forever. Perhaps you need money fast, or the market just isn’t working out for you. It’s very easy to turn your gold in for cash and gain a profit this way. 

This plays into the main advantage of gold — which is that it means something. Its value doesn’t depend on how well a particular company does, how rich our country is, or which celebrities tweet about which products/ stocks. Gold will always be valuable because gold will always have used. 

For more information on this subject, check out this article, “24 Interesting Facts about Gold. 

Verdict: Gold is a Smart Investment 

At the end of the day, gold is a smart investment to make. It’s a deeper investment than stocks; by investing in gold, you’re buying yourself something real and tangible that can have many more uses in the future. 

Whether you’re looking to hedge against a crisis, save up for future generations, play a market, or just simply diversify your portfolio, gold is a great option for you. 

For more articles like this, check out our “general” section. 

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