Gold Bullion: 11 Foolproof Strategic Investing Reasons


Obviously, you might be wondering why is gold so important or valuable and what is all the noise really about? Well, the brain behind my article is that I don’t want you to be clueless about your financial/investment/retirement future and planning. You don’t have to continue from the dark ages when it comes to gold and precious metals, which is why I present to you surefire reasons why gold should be part of your investment combo.

1. Diversification of assets. When thinking about investment vehicles, an old adage usually comes to mind “don’t put all your eggs in one basket”. Although some reviewers say to put all your eggs in one basket and watch over it, good luck to them. Reasonable and knowledgeable investors should ensure that at least 5% of their investment portfolio is made up of gold and precious metals.

2. Continued existence of gold. The fact is that gold has passed the human age and as long as the world remains, gold will be in perpetuity. Gold is superior to other goods, products or investments (buildings, vehicles, stocks, bonds, etc.) because the value of these goods can erode with time and the prevailing economic phenomenon. Take for example, the global stock market saga of 2008; you also have to incur maintenance costs to keep them in good condition.

But on the other hand, the value is not eroded or oxidized regardless of the number of years that we consider.

3. Scarcity of gold. Gold is limited in supply. Statistics revealed that the annual global gold production is around 2,500 tons and the value of gold worldwide is estimated at US$9 trillion. You better buy gold now than regret in the years to come.

4. Status symbol. Without mincing words, gold is very appealing to the eyes and has a powerful impact on nature/the human race. In fact, China and India are well known for the high value they place on gold as a store of wealth, so their wealth is expressed in the quantity and quality of gold that you possess.

It is inherent in human nature to want to belong to the highest investor/social/political class, so the value of the gold you owned in certain societies will determine whether you belong to this ostentatious class of elites.

5. Counterparty risks. Gold is absolutely excluded from counterparty risk. Said term means that you trust the ability of the other party to an agreement/contract to perform on the due date. Examples of stock purchase, employers and employees will explain better.

You buy stocks in the capital market in anticipation of a dividend, price appreciation and cash the following year. It is possible that the stock market will crash before your target date or in the case of an employee working for an employer, it is expected that upon retirement the employer will pay gratuities and a pension, but the employer can go bankrupt before retirement. All of these scenarios cannot happen to gold as it is tangible, in your possession and you can easily convert it into cash to upgrade your prizes.

6. Substitute Insurance Policy. The purpose of the insurance policy is to put you in the exact financial position that you enjoyed before the loss. Gold can also play the same role if you have the same. During national crises (war) like the one experienced in Africa – Liberia and Ruwanda, 1 Kg of gold can restore a person to a life of convenience.

7. Bull market (gold). When you read a guide or review for a commodity or title, the disclaimer is usually at the beginning of it and the summary is that “past performance is not a guarantee of future results”. Therefore, gold is exempt from this model and since the beginning of the new millennium; gold was up with double-digit gains.

8. Anchor against deflation. Of course, an open secret that economic recession is now a global phenomenon, the ever-increasing debts of nations (US and UK for example) could potentially lead to deflation with catastrophic economic impacts. The consequence is that the value of assets will be eroded, but gold has resilience and is more successful in holding its value regardless of economic challenges.

9. Geopolitical risks. Wars, terrorism (USA – unforgettable 911), natural disasters and other allied perils characterize global society today. In times of war, for example, the safety and survival of the individual is the primary concern, there will certainly be economic paralysis and downturns. Major assets; real estate, financial instruments, other properties and cash currencies will be next to worthless in value. Meanwhile, gold provides peace of mind and the value remains constant.

10. Store of Value. Historically, gold is thousands of years old with a history of backing it up as the best store of value. Regardless of economic and global situations (technological changes, trends, development, etc.), gold possessed the characteristic of acceptability and constancy of value. Therefore, for the security of your investment, your retirement and to pass your assets on to the next generation, gold is your best bet.

11. Gold is a backer. History tells us that the first gold coins were minted and put into circulation around 550 BC. gold was the oldest and most enduring form of money. Intrinsically, until tomorrow the sun comes up, gold remains a form of backer.

In view of these green lights, one point in time saves nine. Please click on the link below to begin your investment in gold or 401K.

Source by Adewale Olofinnika

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