Last Updated on May 21, 2021 by MoneyVisual
As we move into a digital financial system, where a person’s wealth can be summed up in ones and zeros, more and more investors are looking for a safe commodity that has stood the test of time and gold ticks all the boxes in that department.
The volatility of global markets and unstable economies does little to calm the experienced investor, and with gold (tangible asset) having the stability that other assets lack, buying gold bullion is a great way to diversify your portfolio.
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If you look back through the history of human development, despite all the changes, gold has always been something that holds its value. Gold has been a preferred way to pass on wealth from generation to generation since time began and despite the unpredictable economy, if you own some gold bars, your investment is safe. There are a few more reasons why you should own gold, which might help to convince you to make an investment.
One can dabble in futures, or invest in digital currencies, but at the end of the day, you might own nothing. If you have your tangible assets sitting in a safety deposit box somewhere, you can be sure that your wealth is real, and such is the demand for this unique yellow metal, you can change it into any other asset at the drop of a hat. Make sure to keep up to date with the scrap gold prices to find out any changes in the rate before you buy or sell it.
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Linked to Inflation
When the cost of living goes up, so does the price of gold, which is just one of the reasons why smart investors prefer the stability of gold. Investing in currency is risky, as the value could go up or down at any time, and while the same could be said for gold, it has a history of stability. The stock market can also see some serious ups and downs and when the signs are there for an economic hiccup, people buy gold, just in case, which puts up the price.
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It could be said that we are going through a time of change, and the political climate is far from stable, with major powers that cannot come to a consensus over environmental issues and the many border disputes, as resources become harder to find.
Prior to World War One, many governments turned all their assets to gold (tangible asset), as a way to protect their wealth from theft or destruction. Gold has always been a popular form of wealth transfer and if you look back at the last 5 years, gold has outperformed most other commodities.
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If you would like to know more about buying gold in bullion format, an online search will put you in touch with a reputable gold bullion broker who can arrange for your purchase and you can take the gold away with you.
It is worth shopping around for the best spot rate, as some brokers sell for more than others. Avoid buying any gold promissory notes, as these are no guarantee that you will eventually possess the gold, insist on taking possession of the commodity, and arrange for it to be stored in a safe place.