Should You Diversify Your Investment with Gold Bars?

August 5, 2019

If you want to truly diversify your financial portfolio with an eye to the future, buying gold bars should be a serious consideration. Some people might consider it a strange thing to do, but the truth is that gold has always held significant value around the world. The good news is that many gold buyers will also sell gold bars.

Why Is Gold a Secure Investment?

Gold has been important to all human culture since antiquity. It has always been considered important as an indicator of social status, royalty, and wealth. In this sense, gold has become the standard value indicator around the world.

If you have other assets, gold should definitely be on your radar, but why? Why should you seriously consider investing in gold bars? Consider the following:

  1. The History of Gold

The long history of gold and human culture gives it a special appeal and has always generated value. Many currencies have come and gone throughout our history, but gold has always remained important and valuable throughout that time. In fact, when other currencies have failed or fallen in value, we always tend to fall back on gold as the de-facto standard of value.

  1. It Guards Against Inflation

When fiat currency loses value, more people tend to invest in gold. There’s a good reason for this: gold rises in value when living costs rise, rather than falling in value when fiat currency drops. This makes investing in gold an excellent guard against rising inflation because it holds value over time.

  1. It Resists Uncertainty

A globalised world offers many benefits, including access to foreign markets, but it is also vulnerable to crashes and troughs. The global financial crisis taught us that even far-flung economies are still tied to the US economy and that a crash in one country can be a lot like dominoes falling around the world.

The history of gold is that it resists these kinds of economic crashes. When economies are failing, people buy into gold because it holds value. In fact, at times of economic uncertainty, gold retains value and often increases in value. This is partly because demand for it during times of economic strain drives value.

  1. Gold Is Getting Scarcer

Over the past few decades, global gold production has actually slowed down significantly. This is partly due to the massive costs involved in setting up new gold mining operations.

As gold becomes a scarce commodity, its value actually increases due to the simple economic law of supply and demand.

Gold: A Smart Investment

The solid history of gold in a wide range of cultures, our positive perception of its value, and its resistance to inflation makes buying gold bars a wise investment in your future financial stability.