Undoubtedly it is right that gold played a necessary role in economics of every nations. Reason behind this is because gold was known as global currency for many years. Even though gold is not the primary from of currency anymore, one can say that it is still a good form of investment and may be give good returns in coming years.
The gold price rose strongly in 2016 and during the beginning six months of 2017. This is the main reason behind many people thinks and hope that the return of gold investment will decrease in year 2018, But by the analysis from bank and other institutions the return on gold is not going to decrease in coming year.
According to investment expert the rate of gold can go up as high as $1400 per ounce by the end of this year. Reason behind this assumption is decline of the U.S dollar in current year.
Benefits of Gold
Gold has its Value – Some of the economists argue, which the rate of gold is not absolutely suggestive of its actual value. To make it easy to understand it means that even if the rate of gold decrease, its real value does not change much. This is because of gold is a commodity. Comparing to dollar, which is a form of proclamation currency.
Hedge Against Inflation – Gold value rise, when inflation takes hold! If there is decline in dollar gold price will be high because gold is priced in dollar. So, it can be said that the gold offer a stable investment compare to cash during inflationary times.
Use of Gold – Gold is a type of metal which is used in different products like jewellery, computers, mobile devices etc. Demand of gold increasing day by day, due to demand gold rate is stable.
Liquidity – It is very easy to convert gold into cash anywhere in the world. Due to globalise and liquidity features gold become good investment option. One can easily get cash by selling gold in anywhere in the world.
Relation between Gold and U.S. dollar
The dollar constantly change between being weak and strong relative to other currencies. The U.S. dollar is the leading currency for trade in the world. But here question arise why this is important? It is important because when U.S. dollar weak the value of gold increase. It also offer favourable rate when U.S. dollar is stronger.
In current year dollar is strong but as it happens, numerous way the dollar will be affected. Strong dollar has decrease the rate of gold but it is expected to weak dollar this is the right time to buy gold or invest in gold.
Whenever the economic are in the critical situation people tends to invest their money in gold bullion or consider the gold bullion as good investment options. Here what is important you need to know is that every bullion is not same. If you are investing in gold bullion buy finest quality gold bullion coins. After all gold bullion are investment grade, so gold bullion are well cared for.
Suppose you bought the gold bullion coins and they are damaged, the price of gold bullion will fall down, and after all you should avoid this while buying gold bullion coins.
The very important thing you need to know is that there are so many contemptible bullion dealers looking to take advantage of people who want to buy gold bullion. If you are interested in buying gold bullion, then look for someone who have decent history in gold bullion. Well research their experience and ask for some reference in order to protect yourself from being fool.
Time to invest in gold
It is good to invest in gold when the inflation is expected to take hold. When you detect the drop in national currency, the better time you should consider buying gold. If you are looking for put some gold on the side, then buy it when the dollar is at its peak.
It can be good to add gold investment in your portfolio, mainly when you are worried about your country’s currency. You should always keep diversified portfolio, so investing in gold or gold bullion can minimize your investment risks.
You may like to Read: Tips on How to Start Investing in Gold in India