16.9 C
New York
Saturday, October 24, 2020

Is Gold Still a Good Investment?

In this period of the pandemic, many people are facing a cash crunch and are hesitant to make new investments. However, some investment options in these dire times still can yield good returns

Is gold a good investment?

invest in goldIs gold a good investment is a question that many people ask the investment consultants. Due to its value and glorious history, gold is admired across the world. People over the years bought gold for a range of reasons. Currently, many economists think that gold has perpetual value and it can stand tough times. We still rely on gold when other currencies start losing worth.

Listed below are some hard-nosed reasons why gold is still a good investment:

1) Gold has a past of holding worth 

why invest in precious metalsOver the years, gold has sustained its worth unlike paper currencies or other forms of assets. People view gold as a means to store value and pass on their fortune from one generation to another. Gold has no corrosion properties. People can melt it easily over a common flame, therefore making it simple to work and manufacture coins. Gold features a radically distinctive colour and has a charming appearance, unlike other metals. Since the antediluvian periods, this precious metal has grown its trust in the minds of people. Its unparalleled features make it stand out from others.

2) Hedge against inflation

investing in gold coinsIs gold still a good investment? Yes, because gold works as an outstanding hedge against inflation. Historically, gold prices soared when inflation rose. It also rises in worth during stock market plunges. The reason behind this is that while fiat currency drops its buying power due to incessant price rise, gold has a propensity to be rated in those currencies. As a result, the value of gold escalates. Besides, this treasured metal is considered as a storehouse of value by people. So, they are spurred on to buy gold when inflation takes place and indigenous currencies sink in value.

3) Geopolitical turmoil

is gold a good investment nowIs gold a good investment now? Yes, because in times of geopolitical turmoil, gold sustains its worth quite efficiently. So, not only it is a storehouse of value in financial instability, but also geopolitical chaos. Gold is historically a crisis commodity since people resort to investing in gold when there is geopolitical tension all over. In these troubled times, gold frequently outclasses other forms of investments. During the European Union dilemma, gold rates surged significantly. It experiences substantial value growth when governments face low confidence from its population.

 4) Portfolio diversification

Is gold a good investment right now? Yes, since it traditionally has a negative correlation with other asset categories. The secret to portfolio diversification is identifying investments that are not intimately correlated to each other.

Pros and cons of investing in gold

Before you invest in gold, given below are some pros and cons of investing in gold that you should take into consideration:

pros and cons of investing in goldPros

  • Gold is an outstanding hedge against a sinking market
  • Gold retains its value during paper currency inflation 
  • Gold can go up in value during geopolitical instability

Cons

  • Gold has a poor historical return as compared to stocks and bonds
  • You can only earn money if you sell it
  • If currencies become absolutely valueless, gold has no worth

  All these resources will definitely give you an idea about is gold still a good investment or not. You will also get an insight into the short term and long term gold investments.

Latest news

Soil Erosion and its repercussions on the environment

Soil erosion, a naturally occurring process that has affected all types of landforms. It is a gradual procedure that has resulted in the enormous...

Dissecting the World of Fossil Fuels

Fossil fuel, a naturally formed fuel by anaerobic decomposition of organisms that are dead and decomposed. These fuels have been categorized as fuels as...

How to Recycle: A Detailed Look at Paper and Plastic Recycling

Paper and Plastic, when combined, constitute near about 40 percent of the garbage that an average American discards daily. The positive side of both...

Read Also

How to Use PayPal for Amazon

Though Amazon does not accept PayPal payment straight away, some certain hacks or tricks enable you to do so. The procedure of using a...

Great Depression in the United States: Some Interesting Facts

The Great Depression in the United States started with the stock market crash in October 1929. The Wall Street crash manifested the start of...

The Bitcoin Bedlam: An Investment Disruption Narrative

We keep hearing about bitcoin and bitcoin stock prices coming back in the news headlines. With any bitcoin prices changing making news and keep investors guessing. In countries where...

Case Study on Indian economy’s shrinkage of 24% last quarter

Of late, Indian economy news has retained a trending position. There has been a significant Indian economy slowdown in the last quarter, or the...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here