WHY INVEST IN GOLD?



Gold used to be the primary currency. However, today, gold is used to preserve the value of financial capital for both individuals and states. In other words, gold is a kind of FINANCIAL INSURANCE. Throughout history, gold has proven to be the best protection, even during high inflation. Investment gold is used by a certain number of investors as a form of financial insurance for their future. This trend is noticeable in middle-aged investors who want to increase their income when they retire. 

These investors buy investment gold in a format appropriate to their financial capabilities. They project that when they retire, they will cash one gold plate or coin each month and thus increase their income. Gold bars of 10, 20, and 50 grams are most often purchased for these


 

 Investors also invest in gold for the following reasons:              

  • On average, the price of gold has stable annual growth.   
  • Gold is the best asset insurance against economic uncertainty and financial market risk.
  • Gold is not an imaginary security but is physically available to the buyer and is easily transferable.
  • Gold is an increasingly sought-after investment product in the world. In the last year, the demand for gold in Europe has increased several times.
  • Gold can never become worthless. It is eternal.
  • Gold can be traded and sold around the world.
  • Gold is not subject to various burdens like other forms of concrete assets.


The right time to buy investment gold is when you have an unallocated amount of money that is not engaged in business. This means that when you have savings that do not yield, money is not involved in business and is worth less and less. Effectively, money is depreciated due to inflation. What exactly does it mean? Nominally, you have the same sum of money at the beginning and end of the year. Still, the amount of product you can buy for that sum is significantly reduced due to the general increase in product prices – inflation.

Investing in gold is a way of preserving value recognised worldwide. Today, gold is mainly sold in its investment form. Investing in gold is not an investment in the true sense of the word but a policy of insurance against inflation, the disappearance of the currency and other extreme crises. Gold does not produce yield but is a form of investment portfolio insurance. It serves as a hedge (protection) against risky investments in shares, bonds and other securities.

It is recommended that each investor has from 20 to 30% of funds in gold and the rest in shares, bonds, real estate and business. One should only invest some of the money in one investment category. Any increase in the price of gold above the inflation rate in the observed period represents additional profit, i.e. earnings.

In the long run, gold has proven to be an extremely stable and reliable guardian of assets from inflationary shocks, to which paper money is particularly susceptible. Two centuries ago, one ounce of gold could buy almost the exact value of goods today.


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