Published: 2019.06.18. The reasons why it is important to invest in gold

The reasons why it is important to invest in gold - Preview

Buying gold is again becoming a popular investment. Why are long-term investments in gold profitable for every investor?

In the face of growing uncertainty in the world, investing free money in gold again attracts investors from different sectors of society. For example, in Germany, private households own 8.900 tons of gold, and in India citizens own more than 20,000 tons of yellow precious metal. Experts cite several main reasons why investing in gold is becoming relevant again in our unstable times.

Crisis insurance

Many people see gold as protecting capital from crisis. The fact is that paper currencies are subject to depreciation, and the stock market is very manipulative, so physical gold can be a reliable means of investing money to save it for the future. The history of gold as a means of payment and exchange goes back thousands of years. In addition, the value of gold demonstrates low volatility, which means that in times of crisis it will be a stable currency and will not depend on banks and governments.

Eternal value

Experts say that gold will never lose its value, as the production costs of its mining are very high, and its quantity in nature is no longer becoming. Therefore, investors are practically not at risk when investing in the yellow precious metal. It is recommended to have up to 10% of your investment portfolio in gold. Thus, it is possible to diversify and protect your assets from future crisis phenomena. Unlike paper currencies, which can optionally be printed in unlimited quantities, gold in the ground is limited, which means its value will only grow with time.