If you haven’t heard of it yet, there are many people who are literally gaga over gold. Precious metals like gold make really good investments because there is always demand for them. Add that to the fact that they only exist in limited amounts, and you have one of the best investments you can possibly have.
Some people acquire gold because of their aesthetic appeal, meaning they are more attracted to gold in the form of jewelry and decorative pieces. Others collect gold coins and obsess with them the way someone obsess over his collections. Perhaps the best reason to collect gold is to earn a profit and to secure your future. So why does gold make a good investment?
1. Gold’s value can never dip too low.
This is because gold has an intrinsic value. Its face value might decline today, but its innate value will always be the same. Gold will always be worth something. Paper investments do not have this intrinsic value so when their values go down and if they are all you have, you can actually be left with a big loss.
2. Its value cannot be manipulated.
The problem with currencies is that the banks can produce more of them, which may cause their values to depreciate considerably. You cannot do that with gold because there is no technology invented that could manufacture this precious metal. Its supply may increase due to mining developments, but that will always be buffered by constantly increasing demand.
3. Gold is one of the best ways to diversify your portfolio.
While you may be satisfied with stocks because they can be lucrative at some points, it is not wise to put everything you’ve got on them. Remember that the economy is ever changing. It’s not always a good day for stocks, bonds, and currencies. The only way to shield yourself from total loss is to invest in something that has an exact opposite nature as that of volatile investments.
4. Gold is tangible.
Gold bears weight and is one of the most satisfying things to have because its value lies in its very nature. Currencies and stocks are merely paper and while they make you profit, they are not very satisfying since you can’t feel their value and hold it in your hands.
5. Gold is simply more secure than any other investments.
The longer you invest in gold, the higher your profit will be and that is almost always a sure thing. Paper investments don’t offer that much security because they are influenced by so many factors to which you have no control.