Did you know that in 2020 gold had an ROI of 24.6%? While this makes it a great short-term investment option, it’s not the only reason to invest in gold.
If you are wondering whether you should buy some gold then you are in the right mindset. But, if you still have doubts about whether it’s worth it then check out this list of reasons to invest in gold today.
1. Used to Back Money
When you make a gold investment you are investing in the element that used to back the Federal Reserve’s USD. That’s right, gold used to give value to the dollar. So, when you buy gold you are bypassing the middleman and collecting the source of money.
2. No Paper Note Means No Contract
Investing in gold also means that you own the gold as well as its value. Unlike fiat, gold is not a contract or an IOU that represents a value; it is the value itself. This means its value cannot disappear like if a currency went bankrupt. It will always have value since it is not liable toward a government institutional contract.
3. Holds Against Inflation
The great part about learning how to invest in gold for beginners is that you can buy it without worrying about inflation. This is because gold is not a currency. Gold is a natural resource that holds its value even when currencies begin to fall. So, it will never go to zero.
4. Lowers Other Investment Risks
When you learn how to invest in gold you are creating a safety net for other risky assets. This strategy diversifies your portfolio in case of a market crash. Plus, gold is not volatile like other investments like cryptocurrency.
Learn more about adding gold to your portfolio by buying minted bars.
5. History of Value Increase
Unlike many new investments, gold has been around for over 100 years. While prices have fluctuated over the decades, gold prices go up and down gradually. Therefore, the price of gold is steady and easily predicted. You can almost certainly buy at a dip and sell at a peak if you wanted. But, you can also hold it for long term without worrying about it dropping in value suddenly.
6. Tangible and Private
Another great tip for how to invest in gold and silver is to buy physical pieces of these resources. They are tangible pieces of investments that you can hold in your hand or keep in a safe.
Plus, gold is a private investment. It doesn’t need to be disclosed or taxed. it can sit in your vault for a rainy day or when catastrophe hits.
How to Invest in Gold
If you want to invest in gold then you have several options. You can buy it online through digital marketplaces or simply buy physical pieces of gold in jewelry or solid coin or bar form at a local shop.
Check out our Finance section for more investment tips.
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