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Why Own Gold
Gold has always been a highly respected commodity throughout the world with coins containing gold dating back to 800 B.C. Gold has been traded for centuries and is still one of the most important investments a person could make. With this being said, there are many reasons to own gold and we have created a list of the top 5.
Gold Has a History of Holding Its Value
Paper currency, coins and other such assets often lose their value, but gold is the one commodity that has retained its value for decades. It is often used as a way of passing on one’s wealth from one generation to the next.
Weakness of the U.S. Dollar
Sure, the U.S. dollar is one of the most important reserve currencies in the world, but when the dollar drops in value, people often flock to gold for its security. There will always be large budget and trade deficits and a large increase in the U.S.’s money supply, and gold will still hold strong and will be one of the best investments you can make.
When the cost of living increases, gold prices tend to rise. This makes gold an excellent hedge against inflation even during those high inflation years that see the stock market plunging.
Just as with inflation, gold offers investors security during times of deflation. When prices decrease, businesses slow down and excessive debt takes over the economy, the purchasing power of gold will increase sharply.
The demand for gold has grown over the years and not just by investors. The jewellery industry consumes just as much gold as the technology industry and those demands are increasing every year. India and China are two of the largest gold consuming nations in the world, often competing for gold with investors looking to increase their investment portfolios worth with the precious metal.
Although there are many more reasons to own gold, these are the most popular. Are you ready to add gold to your investment portfolio? To learn more about gold investing, contact the professionals at Physical Gold today!