Is gold a good asset? Why should you buy gold bullions? For the investor, it is normal and even reasonable to ask yourself whether gold as an asset is a decent investment or not. This is particularly true of gold as it is an inert metal and does not generate interest.
However, the motives for keeping physical gold bullion outweigh the likelihood of price increases. The gold bullion provides different advantages that cannot be found in nearly all other investments. These returns give you the control as the investor. And yes, among these motives is that the price will go up significantly.
Here are some of the reasons to buy and sell gold bullion.
Diversification
Adding a gold investment to a current portfolio of further investment activities such as bonds and stocks decreases the risk of the investment set and can raise the return on the portfolio. In fact, the price of gold is weakly and negatively related to the rates of most other monetary assets, as gold is less affected by economic and macroeconomic phases than almost all other assets.
Several experimental studies conducted by financial scientists and industry associations such as the World Gold Council have confirmed the role of gold as a tool of diversification of the strategic portfolio. The optimal allocation of gold in multiple asset portfolios ranged between 5% and 10%.
Gold Can Be Exclusive and Confidential
How many goods can you say in the world today can be private? If you want some privacy, buying and selling gold bullion is one of the few things that make this possible. Gold is one of the few assets that can remain unknown. If you choose, no one will need to know that you own it. Almost all other investments do not have this advantage.
Low-interest rates can lead to inflation.
You don’t have to be an economist to realize that low interest rates cause inflation and higher prices for everything we buy. Silver and gold protect against inflation risks. Yes, 10-year government bonds are close to 3% and mortgage rates approach 5%. Inflation can always come back.
You don’t need any expertise to buy gold or sell gold bullion
Can you identify a real diamond? Can you look at two pictures and see what is fake? Which antique furniture baseball cards and stamps are more valuable than others?
To sell gold bullion does not require any of this. There is no need for special skills, training or equipment to purchase or learn about gold bullion.
You can buy rare gold bullions and coins, but this is the world of coin collectors most investors should avoid. You invest in gold bullions to protect yourself from crises and lost purchasing power. When the time is right you can sell gold bullion to your nearest gold dealers and get reasonable profits.
Unlike the owners of the company where the company can produce more gold and thus generate more profits, the owners of physical gold for profit depend entirely on higher commodity prices. Which increases his investment. This website as more information on the selling and buying of gold.