Of all the precious metals on earth, gold is the most popular investment. Generally, investors worldwide purchase gold as a hedge or harbor against economic crises including inflation, investment market declines, and the burgeoning national debt. But with various gold price predictions, many neophytes in the investment market are thinking whether investing in gold is still a great idea. The answer to that question is a resounding ‘Yes!’
But before you jump into buying gold in banks or online, it’s best to research ahead what’s in store for you as a gold investor. First, only purchase gold from trusted brands such as Bullion Vault. If you invest in gold at BullionVault, you get worldwide access to the professional bullion market and benefit from the low cost buying, selling and storing gold and silver services. Also, Bullion Vault is one of the most secure bullion storage facilities in the world so you can be sure that you’ll get low insurance costs. Currently, it caters for more than 41,500 users and handles $2.2 billion worth of investments.
While gold is no longer in the forefront of everyday transactions, it still plays an important role in the global economy. Presently, organizations such as the International Monetary Fund (IMF) that fosters global monetary cooperation are holding approximately one-fifth of the world’s supply of above-ground gold. If there’s no continuous circulation and maintenance of gold, organizations such as the IMF and even central banks worldwide would experience slow turnovers which could lead to a global financial crisis.
For your portfolio, gold will play as a diversifying investment. Regardless of whether you are worried about inflation, a declining US dollar, or even protecting your wealth, it is clear that gold has historically served as an investment that can add an expanding component to your portfolio. Also, unlike paper-denominated currencies, gold preserves wealth throughout thousands of generations. While money goes down in value, the price of gold doesn’t crash as quicker as cash.
The history of the gold standard, the role of gold reserves in central banking, gold’s low correlation with other commodity prices, and its pricing in relation to fiat currencies during the 2007-2012 global financial crises, suggest that gold behaves more like a currency than a commodity. So start investing in gold bars or even coins from the United States Mint for a stronger investor portfolio.