In these uncertain financial times, many people are looking at alternative ways to invest their cash. This is understandably so. The worldwide economic collapse saw more and more people keen to invest their money elsewhere. After all, paper money was starting to become worthless.
Gold is one of those precious metals that automatically gets respect. It has a wide and varied history. What is more, throughout history it has always held its value. The same cannot be said for money. Gold coins have always been of value to many cultures and civilisations since the dawn of time.
However, in 2014, fewer people seemed to be investing in gold. The reason for this is uncertain. But, if you are keen to be beat the recession, you need to consider investing in gold.
Here are the top five reasons why:
1. Gold Holds its Value
Many people ask “why invest in gold?” Well, the answer is simple. Since the beginning of man, gold has had significant value in the economy. For those that are keen to make a long term investment, gold is the obvious solution. When did you last hear that gold held no value? Never. This is because gold will always hold its value, irrespective of the economic and financial climate.
2. Weakness of Currency
Currencies, sadly, become weak. When this happens, what will happen to the money that is saved within the banks? This becomes weak and borderline useless. If you are keen to make a sound investment that will stand the test of time, you need to invest in gold. As stated above, it will always continue to hold its value, even when world currency is weak.
Gold has always been an excellent hedge against inflation. This is because the price of gold increases when the cost of living rises. The more money that society has, the more worth that is placed on gold.
Of course, what goes up must come down. In times of economic deflation, gold will still retain its value. The buying power of gold never decreases. While the market may be tenuous and, gold prices may increase and decrease they are a safe bet against deflation rates. Gold will always be a sought after commodity, irrespective of the current economic climate. Periods of deflation do not affect those that have gold within their investment.
5. Increasing Demand for Gold
The need for bullion has increased within the last ten years. This means that people all over the world are eager to get their hands on gold. This is particularly true of emerging economies. India and China are both keen collectors of gold. They see gold as what it is: the more valuable commodity than paper money.
The demand for gold is growing among people in the West too. For those who are savvy investors and are keen to invest in other funds, gold is becoming the obvious solution. With this increasing demand for gold comes great price hikes. This means for those that have already invested in bullion, they will see a lofty return on investment.