6 Reasons to Invest in Gold This Year [Part 2]
Gold may no longer be used as a form of currency, but that doesn’t mean you shouldn’t invest in gold coins, bars, or bullion!
In the previous blog, we discussed a few reasons why you should consider investing in gold this year. Let’s take a look at a few more factors that make gold investments a smart choice.
Gold Supply Is Finite
The demand for gold isn’t dying down anytime soon. In countries such as China and India where gold jewelry is a prominent form of gift given on special occasions year-round, gold bullion consumption continues to increase. Even on the western side of the globe, gold is considered to be one of the most prized precious metals and is in high demand.
Unfortunately, the demand for gold supersedes its supply. After all, gold is a finite and a scarce precious metal and the global reserves are running out fast.
Gold mining is also a difficult and expensive process, which affects the exploration budgets countries have for this metal. It’s likely that buying gold in the next few years will become a much more expensive affair than it is right now, so it’s best to invest ASAP.
Gold Can Be Passed on to Your Future Generation(s)
Another reason to invest in gold is that you can easily pass it on to your next of kin. Gold gifts are often presented by family elders on special occasions, and these are often ornaments that they’ve been safekeeping for years. Similarly, you can buy gold bullions and coins that can be passed on to your next generation when the time comes.
The best part about gold is that it doesn’t lose its value even after decades. Sure, the prices may fluctuate, but the gold investment you pass on to your descendants will still hold high value.
Gold investments can help ensure that your future generations will have a valuable asset to fall back on when the going gets tough.
Gold Bullions Help in Times of Political Instability
It’s 2021 and if there’s one thing we’ve learned in the past few years, it’s that you can never rule out potential political instability. As geopolitical tensions and worldly crises become more and more common, it’s recommended that you take measures to prepare for future financial instability.
Gold investments can help with this. Also referred to as a “crisis commodity”, gold is especially useful during times of political turmoil because its price tends to appreciate widely during such conditions.