3 Reasons Why Gold Coins Make for the Most Secure Investment
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All that glitters is not gold!
That’s because gold is basically a miracle metal. It never corrodes, it’s used to make the most beautiful ornaments, and its value rarely faces a steep decline.
Gold is even used to pass on wealth from one generation to another. It plays a crucial role in the world economy and has for centuries, being an important part of ancient American culture.
But there’s more to gold than just sparkling jewelry; it was termed by Forbes as a safe haven for investors. Here’s why:
1) Hedge against inflation
For a country like the US where inflation is a significant macroeconomic variable, there’s a need for protection against inflationary pressures.
Historical trends have shown that when the US dollar depreciates against other currencies, an increasing number of people start investing in gold. This sudden boost in demand raises gold prices. So if the US dollar loses value, gold’s value rises. This helps gold investors maintain their existing lifestyle even when the prices of everything else are going up.
2) Diversification of portfolio
A common rule of investing says that the overall risk associated with your portfolio decreases when various forms of investment mediums are added to it. This is especially true for gold.
Historically, whenever the prices of other financial instruments have decreased, gold prices have soared high. Therefore, in order to reduce to risk in your investment portfolio, it is advised to use a combination of gold and other volatile instruments. Harvard suggests that ideally, 10–15% of your investment portfolio should comprise of gold.
3) Not affected by political instability
Unlike paper currencies, geopolitical instabilities never affect the value of gold. This is because people view it as a safe investment. In case of a global financial crisis or a war, people rush to gold if they see all other investment opportunities losing their worth.
This claim has been supported by a study carried out by The Guardian, which said that gold prices have increased by 300% over the past ten years. This is simply because unlike all other investments and currencies, gold is extremely rare and finite in nature. So it’ll almost never lose its value.
If you’re looking for an expert investment dealer in Los Angeles, please contact Orion Metal Exchange. We help our investors purchase, and then store precious metals in secure and insured vaults. For further details, feel free to contact us online. Our experts also provide guidance and investment advice on the phone. Give us a call at 1800-558-0088.
