Gold is historically one of the most important precious metals in the world and is well known for its value and prestige. Gold is also an appealing investment vehicle, but as with any investment, research is essential. Understanding the benefits and risks of buying gold will help you decide whether it’s the right option.
Why Should You Buy Gold?
The main reason to buy gold is to diversify your portfolio and hedge against inflation. Historically, gold prices have had an inverse correlation with paper markets—gold prices rise as currency values drop because investors move to a more secure investment vehicle. Similarly, the cost of gold drops when paper currencies are strong as some investors sell their gold to buy into bullish paper markets.In practical terms, having a store of physical gold or precious metal ensures that your investments always generate income, either by earning interest or dividends via paper income or the rising gold price.
