Does it Make Sense to Invest in Gold in 2019?

 

Gold was thought-out to be a universal currency for many years. In 1944, after the Bretton Woods Agreement, dollar substituted gold as an anchor currency. However, gold continued to be used to give a lift to various countries’ local currency. Today, the precious metal is one of the most popular investments both as a form of portfolio diversification and a hedge for different classes of investments.

 

How to invest in gold?

If you are looking for direct investment in gold, you may consider buying physical gold. This involves buying into gold bullion bars, bullion coins or jewelry. These can be acquired from a gold storefront or jewelry shop down the street or online from reputable online gold trading sites. Like in any other investment, you want to ensure that you are acquiring the gold in its purest form and at a fair price. You will also need a proper safe or depositor’s account with a bank for its storage.

 

What are the pros and cons of investing in gold?


Pros:

- Helps protect your long term savings from the effects of inflation

- Presents you with one of the most viable investment diversification options

- It is easier to invest in gold than keep trolling the markets looking for the right shares or stocks

- Unlike fiat currency or company shares, its value can never go down to Zero even in the worst economic downturns like war

- Can be used to hedge against the dollar and most other international currencies

 

Cons:

- Fewer volatilities mean low rates of return

- Keeping physical gold safe may be relatively stressful and expensive

- The high fees in collector’s fees and premiums on prices for physical gold eat into possible profits

 

Gold as a Form of Investment

Although gold is no longer used as a standard form of currency internationally, it still remains to be a preferred investment choice for many potential investors. Below you will find some of the reasons that make gold a better investment choice in 2019.

 

Liquidity

Gold is believed to be one of the most liquid assets as it can be conveniently converted into cash whenever and wherever required. Similar to cash, the liquidity and acceptance of gold is incomparable and you can sell it instantly whenever needed.

 

Maintains Its Value

Unlike other investments and assets, gold tends to hold its value over the passage of time. Economists believe that even the gold price is not able to signify its real worth, meaning if the gold price drops, the primitive gold value doesn’t vary a lot. This is mainly because unlike dollar that holds no inherent value, there is a fixed quantity of gold.

 

Hedges Inflation

Gold prices generally increase when your local currency loses its worth and inflation takes hold. As gold is valued in dollars, any decrease in the dollars price will trigger raise in the gold prices. Thus, because of its stability, gold can act as a better investment option than its counterparts.

 

Portfolio Diversification

Gold is a simple and effortless way to expand your investment portfolio. You can significantly reduce the overall risk of your investments through portfolio diversification. Since, gold generally moves in reverse to the futures market, it’s relatively easier to diversify with gold than other investment options.

 

Gold can be used as an Input for Other Products

As gold is used to produce other products like jewelry, there is a significant need that also readjusts the gold prices.


Conclusion

When it comes to long-term investment, gold is certainly the best option – and continues to be, this year. If you’re interested in latest monetary news including the inflation status or devaluation of your local currency, you may want to include gold to your investment portfolio.

 

Source: www.learnbonds.com/news/does-it-make-sense-to-invest-in-gold-in-2019-or-not

 

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