Why Invest In Gold?
Gold has been a consistent performer as an investment throughout history. Used as a hedge against inflation, as an alternative during volatile times in equity markets, and as a way to store your own wealth, gold has proven extremely valuable as a financial tool.
Gold has proven itself through thousands of years of increasing in value. Recently, gold has also performed extremely well as in investment. During the 2000’s the price of gold more than tripled. Gold is widely accepted as an alternative to holding currency, and can easily be liquidated and converted to cash when needed.
The gold supply increases at a stable rate, meaning that the supply won’t be affected by outside factors like a central bank’s monetary policy. Increases in the supply are limited to the rate at which gold can be mined from the earth. Generally, only significantly higher prices spur investments in new mining ventures. This helps to ensure a stable supply, and encourages the price to rise over time.
Gold is also used in manufacturing and industrial processes, which creates real demand for the metal.
When you consider that supply is limited. and demand for gold is spurred not only by the need for a stable store of wealth, but for jewelry, decorative, and industrial purposes, you get a feel for why so many people choose to invest in gold.