Gold has been used for countless centuries as an indication of wealth, power and honor, but it has also been a fantastic investment choice. Why? Well, because it is what has essentially set the standard throughout monetary history. Here are ten reasons that you should consider gold as a part of your investment portfolio:
1. Of all precious metals, gold has traditionally been the first choice for hedging investments against inflation, political crisis or economic uncertainty.
2. As of the time of this writing, gold is trading at $1519.00 per ounce. Just 6 years ago, though, it was trading at just $513 per ounce. That's a significant return for anyone that invested in gold in 2020 and held onto it.
3. Gold is driven by the age old system of supply and demand, but speculation also plays a part in determining the price of this precious metal. Yet, unlike most available commodities, consumption
doesn't affect its price as much as savings and disposal do.
4. While investors' return on equities, real estate and bonds do not compensate for inflation or risk, gold's demand increases.
5. Jewelry accounts for more than two-thirds of the demand for gold.
6. Industrial, medical and dentistry uses of gold account for about 12% of the demand for gold.
7. During war or hard economic times, gold is seen as an asset that will always be able to purchase food, shelter or transportation. This is why the demand for gold tends to rise during periods of
8. Gold can be purchased and held in coin and bar form, giving the purchaser immediate access to his or her investment.
9. Gold can also be traded through the stock exchanges in the form of ETFs, CEFs and ETNs. In addition, derivatives like gold futures, forwards and options can be traded as well.
10. Additional gold investments include certificates, accounts and investments in gold mines.
Besides its widespread monetary and symbolic functions, gold has many practical uses in dentistry, electronics, and other fields. Its high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity lead to many uses of gold, including electric wiring, colored glass production and even gold leaf eating.
Gold has been highly valued in many societies throughout the ages. In keeping with this it has often had a strongly positive symbolic meaning closely connected to the values held in the highest esteem in the society in question. Gold may symbolize power, strength, wealth, warmth, happiness, love, hope, optimism, intelligence, justice, balance, perfection, summer, harvest and the sun.
Gold represents great value. Respected people are treated with the most valued rule, the "golden rule". A company may give its most valued customers "gold cards" or make them "gold members". We value moments of peace and therefore we say: "silence is golden". In Greek mythology there was the "golden fleece".
Gold is further associated with the wisdom of aging and fruition. The fiftieth wedding anniversary is golden. Our precious latter years are sometimes considered "golden years". The height of a civilization is referred to as a "golden age".
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