Investing in gold bullion, physical or online, is a reassuring, unchangeable, and immutable investment that has proven to preserve the value of capital during crises, time and again. Gold is known to be one of the common measures to hedge against deflation and stock market risk.
Reasons to invest in gold
Gold, as we know, is not used as a currency at present, but it is precious and superior to any currency and thus makes a brilliant economic asset.
Gold bullion bars can be exchanged for cash, making them high liquid assets, because you will always find a large number of buyers interested to buy gold bullion and sellers interested to sell gold bullion across the globe.
An investment in gold is that it can protect one’s investments, during periods of an economic, monetary or geopolitical crisis. Gold can move from being a defensive tool to an offensive profit machine, depending on the nature of the crisis.
A number of economists believe that gold is a highly effective portfolio diversifier because of its low to negative correlation with other major asset classes. For a steady level of returns from a particular portfolio, people prefer to add gold to it to reduce the risk or volatility.
In case, the currency of a country experiences an unexpected fall due to several macro-economic factors, gold investments support the traders with a cushioning.
Scroll and read through the infographic for more information on investing in gold and silver.