5 Reasons Why Gold Continues to be Value Increases Every Year
Thousands of years ago, people used gold for trading purposes.It is still used extensively today in the form of jewelry, coins, bullions and even in electronics.
All its applications across several different industries, also make gold the perfect precious metal to invest in and enjoy lucrative ROIs. But what are the factors that affect gold’s value?
1. Global Market Demand for Gold
As the world is adopting digital transformation, the global market demand and supply requirements continue to vary.
Many electronic items manufacturers and automotive industries are buying gold in bulk. They use gold for its exceptional conductivity and long life.
2. Hedge Against Inflation
Many of us consider gold as a great hedge against inflation. Whether there’s an economic crisis or political uncertainty, no such factors affect gold’s value.
Even during the COVID-19 crisis, many paper currencies were affected and lost value but not gold.
Like mentioned before, the gold value depends on the demand of the global market like automotive, electronic, dentistry, and jewelry market.
3. It’s Rare
Gold is rare; it is one of the biggest reasons why it’s expensive. Also, the world has only discovered a few gold mines due to which its supply is lower than its market demand.
However, this is an opportunity for you, buy gold and keep it as an asset. Your investment in gold will give you lucrative returns within a few years.
When you invest in gold to make money, you simply secure your asset in a physical form. However, there are other multiple ways to invest in gold, like gold coins, gold IRA, etc.