Investors around the world will argue about the value of having gold in your portfolio. There are some that consider this precious metal to be a relic of days long gone by. However, there are more who consider it to be a very important asset. With unique qualities that make it vital for investors to hold in their portfolios. Gold prices have been hitting the financial news recently as they have been enjoying a bit of a rise. Which is why we want to focus on why gold still has a place in modern society, how people can invest in this precious metal, and why it has a place in your portfolio.
Why Gold is Important
Right up until 1971, the US currency was backed by gold. Even though it is not used in this way any more it does still hold some importance. It is important to the world’s economy. To find out why, you can look to the central banks and other financial institutions. These organisations, which include the International Monetary Fund, hold one-fifth of the world’s supply of gold. Gold has been used to preserve wealth for thousands of years, and it is still used in this way today. Using gold, it is possible to hedge against declining currency prices and rising inflation. When inflation rises, gold also increases in value.
Today’s modern world is one full of uncertainty. With tensions in Africa, the Middle East and in various other locations around the world, investors consider gold to be a safe haven. Historically, this has always been the case. Those investors who held onto their gold were able to protect their wealth and even escape any turmoil.
Investing in gold several hundred years ago was much different than it is today. Modern day investors can choose to invest in gold by buying:
Different Ways to Invest in Gold
- Gold bullion
- Gold jewellery
- Gold futures
- Gold coins
- Gold companies
- Gold mutual funds
- Gold ETFs
Is Gold a Good Investment Right Now?
Gold is not always a good investment, but the good times to invest far outweigh the bad. The best time to invest in gold will be when the price is low because it has fallen out of favour with investors. With gold prices enjoying a rise, now may well be the wrong time to buy. When it is inexpensive will be better because it provides a better potential for returning a profit when the price rises.
If you’re interested in buying gold bullion Indigo Precious Metals will be able to help. With many years experience in the industry and a reputation to match, you know your purchases will be in safe hands.