The volatility of the market can be a cruel mistress. Not only can it demotivate you not to try additional investment methods, but it can also make you panic about any existing investment. But in the long term, these additional methods may invite significant gains.
Gold is one such method of investing. However, the apprehension caused by its fluctuating prices might make it seem unappealing to you. But is the situation of this metal as terrible as it sounds?
Gold in the Current Market
As you are aware, gold can exist in a variety of forms. From bars to jewellery, people have traditionally purchased this precious metal for its monetary value, as well as its visual appearance.
But this rapid buying ceased until the pandemic started in 2020. Since then, the prices of this metal have been steadily increasing, inviting multiple investors back into the market.
According to a market watch report by YCharts, the price of gold is currently at AUD 2629.20. This figure increased from AUD 2356.40 in the last year and has shown a reported increase of 11.58% in the same period.
This precious metal is headed toward growth in the future. Yet, it begs the question: is this precious metal a suitable investment option?
Reasons to Invest in Gold
Now that you know that this piece of metal is winning back investors’ confidence, you can understand what makes it an exceptional instrument for investment. Here are five reasons why gold is a better investment than you think:
Acts as an Inflating Hedge
Historically, this precious metal has been used to reduce the risk of adverse price movements, especially in the case of inflation. This is because its price increases along with the cost of living. As the value of flat currency decreases, you can use gold to average it out and balance your finances.
Unstable Geopolitical Conditions
The price of gold also rises if the confidence in government is low. People tend to invest in this metal when they are sceptical about geopolitical conditions. In this case, it acts as a safeguard, often outperforming other investments.
Reduction in Supply
The old economic principle comes into play here since low supply leads to high demand. Its production reportedly fell by 1.3 million ounces in 2020 due to the limited number of mines. Since new mines take substantial time to get set up, it is advantageous to get your hands on this precious metal quickly.
Diversification in Portfolio
The new-age investor knows that diversification is the key to being ready for the market’s fluctuations. Thanks to this belief, people have started using gold for investing, along with additional methods like the stock market. This metal offers a relatively secure place to invest and may provide beneficial gains in the long run.
Apart from its value, this precious metal can also be used as an accessory. It is found in various forms that add to its visual appearance, from rings to bracelets. This way, it is used as an accessory instead of gathering dust in the cupboard.
The best time to invest is now! With promising trends in favour of this precious metal, you can rest assured that its value can never reach zero. So, contact your nearest supplier and get your hands on it now!