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5 Benefits of Investing in Gold

By    |   Sunday, 12 July 2015 10:46 AM

For investors who are not risk-averse, gold investing marks a decent strategy over time.

Here are five benefits of investing in gold.

1. Value
Gold acts as a protection when currency is devalued, according to QWealthReport.com. Its value in the marketplace, while fluctuating, retains value around the world, even as different currencies go up and down.

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2. Inflation Protection
Gold acts as a hedge against inflation. Its value grows at times when inflation goes up and limits what you might be able to buy with the dollar itself, AARP The Magazine reported.

3. Insurance
Some regard gold as the ultimate insurance policy, the AARP noted. They warn that in the event of a bank crisis, those who hold actual gold retain a currency.

4. Minimizing Risk
While gold markets are often described as volatile by some analysts, longtime ownership of gold investments is seen as a valued part of a diversified portfolio, especially for those investors who are in the market over the longterm and are not risk averse, CNBC said. Several analysts suggest that no more than 10 percent of a portfolio should be held in gold. Added the CNBC analyst Jim Cramer: "Owning gold is not about upside potential. It is about minimizing risk to the downside."

5. High Demand
Gold remains in high demand globally, whether purchased by governments or by consumers including with jewelry. According to the World Gold Council, the first quarter of 2015 marked the 17th consecutive quarter of net gold purchases by central banks around the world, a trend described as steady. Global jewelry demand was up 5 percent above its five-year quarterly average, the council noted.

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For investors who are not risk-averse, gold investing marks a decent strategy over time.
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Sunday, 12 July 2015 10:46 AM
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