4 Good Reasons to Own Gold
Precious metals investment has long been perceived as a haven for investors to protect a portfolio against economic uncertainties and currency inflation. But, when it comes to investing in precious metals, there is only so much to put your money in. One of these precious metals is gold—also known as the king of all precious metals.
Gold Investment – Why Is It Good?
A Bright History
Gold is considered a valuable asset to possess due to its rich history. For centuries, gold has been perceived as a useful item that can be passed on from one generation to another. In the earlier days, gold was considered a royal commodity, and kings used to claim ownership of the kingdom’s gold supply.
Gold bullion coins and bullion bars don’t corrode or get rusted and can be kept in storage for extended periods. Also, gold is malleable, which means it can be hammered into sheets. Gold can be turned into any shape the owner desires to keep it in, whether as fine jewelry or minted in the form of a coin.
Works Well Against Dollar
Gold is considered an important aspect of an investor’s portfolio. This is due to its ability to perform well in a declining economy. The hints of this were seen in the great recession from 2001 to 2008, when world events caused the dollar’s value to decline. This is when gold saw an increase of 400% in value, taking the market worth from over $200 US dollars to the $1000 mark for the first time.
This is because whenever currency sees a decline, it causes an increase in the demand for gold which isn’t met due to a lack of supply. The lapse in supply and demand drives up the value in the market.
Hedge Against Inflation
Inflation occurs when there’s a rise in the prices for raw materials, increasing the overall production cost in a certain region. This forces the government to print more money which causes the currency to devalue.
This is when gold has historically soared. The loss of purchasing power through fiat money boosts the prices of gold and other commodities in the market. This is why investors are moved to invest in gold when the economy indicates a threat of inflation.
Less Volatility
Investing in gold is beneficial because it is less volatile to the market uncertainties caused by geo-political reasons. Gold and other precious metals retain their value even in the toughest world catastrophes and often tend to outperform other investments, including stocks and bonds.
For example, the world’s economy faced a major deficit during COVID-19 when most industries failed. Gold, at this time, didn’t only maintain its value but managed to rise in a slow economy.
Orion Metal Exchange is one of the top gold investment companies, serving our clients across the country for over 50 years.
Based in Los Angeles, we offer top consultation for precious metals IRA and gold & silver storage solutions for investors all over the United States. We also provide high-quality gold and silver bullion bars and coins for precious metal investment and storage.
Want to learn more about safe investments in 2022? Contact us today!
