Thinking about investing? Stock Market? A house or property? Gold? Yes, gold offers secure value and is easy to invest. Gold acts as a reliable “store of value” because it fulfils the functions of money. It is portable and divisible.
Its weight is a good measurement of a unit of value. It is indestructible, relatively scarce and cannot be “manufactured”. It is easily recognisable and acceptable as a form of payment. Historically, the value of national currencies rises and falls but the value of gold remains, remarkably stable.
Gold is an asset that does not depend upon governments or corporations promise to repay. It is not directly affected by the policies in any country and it cannot be repudiated or frozen, as in the case of assets. Gold is the most liquid asset. It can be readily bought or sold 24-hours a day in one or more markets around the world.
This cannot be said of most investments, including stocks of the world’s largest corporations. In addition, the trading spreads on bullion are generally narrower than the spreads on stocks and bonds (which are considered as liquid assets).
Finally, it takes about the same amount of time to execute a trade in gold as is does for stocks and bonds. Whether your investment approach is conservative or aggressive, gold can play a vital role in diversifying your portfolio.
Many experts urge investors to keep a portion of their total assets in gold. A typical portfolio is invested primarily in financial assets such as stocks and bonds. Gold’s low-to-negative correlation with stocks and bonds makes it an excellent portfolio diversifier.
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