Gold has captured humanity’s interest for millennia on end. From ancient times to the colonial era to the present day, we can’t get enough of its brilliant, never tarnished, never sullied shine. Useful in both decoration and technology applications, gold stands near the pinnacle of our metal valuation.
With this in mind, you may wonder, “Does gold make a good investment?” The following gold guide will help you understand gold’s value as an investment, and how it compares to other commodities.
Why You Should Invest in Gold
Gold makes an excellent investment, if you ask any stockbroker. The gold value guides at websites like goldinvestingsite.com will be happy to expound upon your gold’s value as an investment. However, to simplify matters, let’s look at two of the best reasons that gold makes a good investment:
Gold Holds Its Value
This is by far gold’s biggest asset. It tends to hold its value against the changing tides of the financial landscape. Other stocks or bonds may fall, but gold values stay fairly constant. Due to this fact…
Gold Protects Against Inflation and Volatility
Since gold holds its value, it protects your investments from inflation and stock market volatility. If you invest one hundred dollars in a tech startup’s stock and another hundred in a piece of gold, you might well lose your investment in the former, depending on how the stock market fluctuates.
Gold’s Value Increases With Demand
In countries with emerging financial markets, gold has long been a cultural touchstone. This means that the demand for gold is increasing. You can check any gold coin values guide online to see what your gold is worth in the current market. Gold IRA vs Gold ETF: Both a Gold IRA and a Gold ETF provide exposure to the gold market, but a Gold IRA holds physical gold as an investment, while a Gold ETF invests in gold derivatives.
Ways to Invest in Gold
Now that our gold guide has established the value gold holds as an investment, you might be wondering how you can invest in gold for yourself. There are three main ways, including:
Physical Gold
Investing in physical gold is by far the most common method. Gold jewelry, gold coins, and gold bullion all offer examples of physical gold investments. However, you need to make sure they’re properly insured and stored to prevent damage or theft.
Paper Gold
Paper gold, in essence, is a piece of paper that matches the value of gold, allowing for electronic gold trading. However, there are some concerns in gold value guides that this method is subject to greater market forces.
Gold Stocks
The most indirect method of investing in gold is to invest in gold mining stocks. These stocks are shares in a gold mining company, so their prices typically remain fixed. However, according to most guides about gold value, their revenue moves with the price of the gold. Plus, you can take company dividends.
Let’s Review Our Gold Guide
So, to recap: Does gold make a good investment? The answer is a resounding yes! According to our gold guide, it holds its value and protects you against wider market forces. With a variety of ways you can invest in gold and diversify your portfolio, there’s no reason to fear. However, if you still need further financial and investment advice, take a look at the Finance section of our blog today!
