Gold is known as a very stable and reliable commodity to invest in, with its exclusive status which is a great way of diversifying your portfolio. Investing in gold, like anything, comes with its pros and cons which we will look at in this article:
Investing in gold, is it a good investment?
Pros:
A safe investment: Gold is seen as a safe place to store money, as the prices of gold tend to continuously rise. As opposed to investing in stocks, you don’t have to worry about markets crashing as gold retains its value and increases in price over time.
A hedge against inflation:A big pro about investing in gold is that gold beats the inflation rate and allows you to preserve capital.
It’s easy: Investing in gold is in fact relatively easy to do. There are many dealers from which you can buy coins or bullions, and trading platforms (which are compared on LikeMoney) are usually quite simple to understand. Also, physical ownership means that access to your gold is instant and you can turn it into cash when you please.
Cons:
Political climate: The price of gold can be affected by political unrest or conflict in a country. Many investors fear that the price of gold will be affected by governments and banks that hold large amounts and are about to release it, while others reckon that this is unlikely to occur.
Few commercial applications: Even though gold is valuable, there aren’t many commercial applications for it and there is a cost for storage and insurance. For this reason, many investors are against the idea of trading in gold.
Lack of broker support: Most brokers don’t know a whole lot about investing in gold, so they often discourage it.This means that even though it may be the right choice for you, you may decline due to the lack of support.
In summary, investing in gold certainly has its pros and cons, but either way, make sure you are clued up before making a decision. Of course, LikeMoney is there to help with the decision making process.
