Image source: LOM Financial
Gold is one of the most precious metals known to man and it has been valued greatly in many civilizations in history for thousands of years—even until to this day. You might be wondering, why do people invest in gold even in this modern day and age? Let’s discuss some of the financial benefits of investing in this precious metal:
- It can protect investors against potential market crash.
For every worst financial crisis, gold has been a go-to option for many investors – and this because, even during financial uncertainties or even political instability, gold retains its value.
- It’s a vital entry in a diversified portfolio.
Gold is an asset of choice and a refuge for even high net-worth individuals in times of financial panic because it’s a relatively safe investment. It can withstand the threats that can easily crush other investment options. For this reason alone, gold should be in every wise investor’s investment portfolio.
- It has a global and cultural demand.
Gold is a sacred part of several cultures in the world, especially for many emerging economies. Its global demand can be credited to its cultural value as a symbol of wealth and prosperity.
For instance, in India alone, the country’s demand for gold increased by 9.1% in 2017, from 666 tonnes in 2016 to 727 tonnes. China, on the other hand, sees owning physical gold bars as a form of savings.
- Despite short-term volatility, gold remains stable.
Gold has seen its ups and downs but its regular price swings won’t remove the fact that the benefits of investing in this precious metal will always outweigh the risks. Aside from being relatively easy to acquire physical especially for small investors, owning a piece of this valuable metal can be satisfying.