For centuries, savvy investors have been aware of the importance of gold as part of a well-balanced portfolio. In addition to offering wealth diversification, gold is a world-renowned safe haven for investors, offering the ultimate insurance and protection against turbulent economic times.
History illustrates that gold is a timeless asset, not only proving to be a successful preserver of wealth, but high gold prices and record demand has ensured it has outperformed many other forms of investment.
Gold has remained a popular asset since the last financial crisis, when confidence in financial institutions was shaken. Just over a decade later and 2020 proved to be another unprecedented year due to the Covid-19 pandemic.
The response of central banks has been unprecedented money-printing, historically low interest rates, and increasing public spending, raising national debt to new peace-time highs, and risking high levels of inflation.
Gold reached a new all-time high in August 2020 as demand soared worldwide for the traditional safe haven metal. With inflation fears rising, gold’s hedge status could see it reach new all-time highs in the months and years ahead as the world rebalances the books.
The fiscal stimulus that dominated 2020 and 2021 have raised the spectre of inflation once more however. Economies face soaring prices, with supply constraints exasperating issues. Following record-low interest rates, markets are now faced with rate rises in the hopes these can bring inflation back down without prematurely ending the economic recovery, while conflict in Europe reminds the world that geopolitics are still a risk factor even in the 21st century.
With inflation eroding the value of any money kept in the bank, more investors are turning to gold to help protect their wealth in an increasingly volatile global economy.
How to Buy Gold?
Our investment guide provides essential reading for all investors on how to buy gold. If you’ve never bought gold before then we can help explain how to invest in gold for beginners. Even seasoned investors can benefit though, and this guide is packed with must-read information and advice on how to invest in gold coins and bars, including why buy gold, where to buy gold and storing gold.
The guide also looks into bars vs coins, gold vs silver, capital gains tax on bullion and the benefits of owning physical gold over paper and electronic gold, plus much more.
Why Invest in Gold?
In order to know if gold is a good investment, it is important to understand why people buy gold. In times of economic uncertainty and instability, buying gold makes more sense than other assets. With confidence in the banking system and worldwide economy at an all-time low, gold bullion could be the ultimate insurance and should act as an essential part of everybody’s investment portfolio. With the famous yellow metal in greater demand than ever, there are many reasons why people should buy gold. Owning gold could be the ultimate way to preserve your wealth, and possibly make a healthy return in these uncertain times. It’s an age old question which people have been asking for centuries – where is my money really safe? And more and more people are now choosing the oldest answer: GOLD.
Read more about the benefits of buying gold.