Gold, a yellow precious metal, has historically played a major role in our global economy for hundred of years. Although it is no longer considered the primary form of currency, as it used to be, gold remains a popular investment for a number of reasons. Some people buy gold as a reaction to the uncertainties around them; others buy them because it is a solid long-term investment. Gold can be a valuable portfolio addition to your IRA, certificates of deposits and money market investments.
The reasons are obvious:
- Liquidity. You can easily convert gold into cash anywhere in the world.
- Diversification. It is best to not put all your eggs in one basket. Diversification still holds the key in order to survive given the uncertainties. Diversification is the only way to secure wealth in the midst of all these uncertainties.
- Value. The value of gold can depend on the stock market, but still gold has historically been the best investment of choice for so many.
As a tangible, real physical asset, gold is still the trusted form of investment than the more complex financial instruments, which are vulnerable to cyber security threats. Recent hacking of the Bangladesh’s foreign reserves is a good example and why it is wise to be mindful of which investment portfolio you should go for. If you are new to this gold investment, learn how to invest in gold by grabbing a copy of “The New Case of Gold” by James Rickards, an economic commentator. The book is No. 1 Best Seller in Money and Monetary Policy.