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5 Ways Gold Investments Will Benefit Your Children and Grandchildren
Why invest in gold?
We find “why invest in gold?” is one of the most frequently asked questions we receive. Apart from the fact that investments in gold make perfect sense during financial crises, it’s also a much sought-after asset class for creating a wealth-building portfolio. But how much gold should an investor’s portfolio have? In a report published by the World Gold Council, $7.5 trillion is the total value of all the gold mined on the planet so far.
Firstly, gold is a hard tangible asset that does not tarnish, diminish and or devalue over the years. Given that gold has continually appreciated in value, buying now can mean that your investments bear fruit in the later years of your life.
Many investors do not prefer to hold physical gold and instead invest in gold futures, or gold ETFs. However, we must remember that these investment vehicles carry counterparty risk. Counterparty risk is the risk posed by a counterparty. For example, if you buy gold backed paper ETFs, the company issuing the paper purchases certain amounts of gold to back your paper certificate. However, the company also sells similar investment vehicles to other investors. What is there isn’t enough gold to back the paper in the event of a market crash? Then you run the risk of losing your money. On the other hand, if you hold gold in its physical state, you avoid this risk altogether.
Gold is an excellent choice of asset class that can serve as ballast to form a strong and unshakable base for your diversified portfolio. What’s more, they are tax-free.
Fiat money, stocks and bonds are all subject to the forces of inflation, while gold is not in the short term. Over the longer term, gold is also subject to inflationary forces. However, we must remember that gold delivers value in the long-term. This is why it’s such a great long term investment.
Speak to our investment experts to discuss how to build a lasting portfolio
Our team of gold investment experts are always happy to advise you on what products to buy and when to buy them. Call us on 020 7060 9992 or contact us through our website to speak to our gold investment team, who can help you plan for your long-term investment goals.
Live Gold Spot Price in Sterling.
Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Live Silver Spot Price in Sterling.
Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.