There are many reasons why investing in physical gold is advantageous. Here are some reasons:
- Inflation hedge. Inflation often instills fear to many investors because it always affects the value of the money they have in the bank. As time goes on the purchasing power of the dollar predictably declines. In 1990, gold was selling at an average price of $383 per ounce, in 2010, the price of gold has risen to $1118 per ounce. The gold’s purchasing power remained stable over this 20-year period. One of the primary attractions of gold as an investment option is the security of knowing that the price is going to rise steadily overtime. We can certainly conclude that the price of gold is going to be higher 10-20 years from now.
- Portfolio Diversification. As we have mentioned, the price of gold performs very well in times of uncertainty. Therefore, a good way to balance the volatility and returns within your investment portfolio is to include gold in your lineup. Specifically, the inclusion of gold is part of diversified portfolio which protect you against a wealth wipe out. In extraordinary situations such as severe economic depression or stock market crash.
- Investing in physical gold is not a difficult task. Newbies can learn it quite fast even without the experience in money investment. There’s no shortage of dealers around the world. When it comes to storing your gold, a simple deposit box in your bank is sufficient to store your gold safely, securely and conveniently.