As an investor, it’s normal to question if a specific investment is a viable pick. One of the most common considerations, especially during an economic downturn, is whether to invest in gold. This trend has persisted for ages, with gold often considered by most investors to be a stable investment because its value is constantly on the rise.
However, there are other reasons why you should consider investing in this highly sought-after precious metal in its physical state, be it in the form of bars or coins. If you want further convincing reasons to invest in gold bullion, look no further. Below is a complete article on the benefits of buying physical gold.
1. Price Stability
Periods of economic instability such as the 2008 financial crisis, geopolitical tension, or the coronavirus outbreak led to a drastic fall in the prices of shares, and other commodities. In contrast, gold holds its price relatively well during these periods of economic shocks. Gold’s price begins to climb at such times, earning it the moniker “crisis commodity”.
With this in mind, you should start searching for the best 1 oz gold coins to buy during periods of economic crisis. Many investors often employ this investing strategy during periods of economic instability who fear the value of traditional assets might drop to zero. But with gold, this isn’t something that can ever happen because this precious metal holds an intrinsic value. And to prove this, you can check out gold’s historical value to see it maintained relative stability for an extended duration during times of economic crisis.
2. It’s Easy To Buy And Sells Physical Gold
Another advantage of physical gold is that it’s easy to buy and sell thanks to its highly liquid nature. When buying physical gold, you need to approach a jewelry dealer in your region and make your purchase. However, you should only buy actual gold from a reputable dealer who will supply you with a certificate certifying the precious metal’s purity. Banks are also a good place to go if you want to acquire gold bars or coins quickly.
It’s essential to only deal with reputable dealers when buying physical gold because they’ll provide you with receipts that might be used for reference in the future. Doing this also guarantees that you don’t suffer any risk since gold will be of desirable quality.
When looking to sell your physical gold, you also won’t break a sweat because you can easily find a local dealer. This is because this precious metal is always in demand, so finding a potential buyer shouldn’t be a hassle. Likewise, you don’t have to worry about how much does it cost to get a coin graded, thanks to the demand from local traders and dealers. You can also decide to use your physical gold as collateral when taking out a secured loan from a lender and, as a result, pay a lower interest rate.
3. Gold Doesn’t Need Too Much Maintenance
Many assets such as real estate property gradually depreciate over time as they get older. But with physical gold, you shouldn’t worry about this ever happening regardless of how long it’s stored in a safe. The best part is that you also don’t need to constantly maintain this precious metal to ensure it remains in perfect condition, as with many other assets. As a result, owning this precious metal is less exhausting because a lot isn’t required from you to maintain its condition.
4. You Don’t Need Specialized Knowledge
Most of the profitable investment options today, such as stocks and mutual funds, require you to have specialized knowledge of how they work so that you can make money. Other tangible assets, such as paintings, antique furniture pieces, diamond or baseball cards, require a specialist to distinguish between authentic and fake.
But to buy physical gold, you don’t need any specialized training, skills, or equipment, as is the case with other investments. Instead, you just need to go to a reliable jewelry dealer or bank and buy your gold bullion. In addition, the buying process is relatively straightforward.
5. Gold Is Money
While gold today isn’t used as a currency, it boasts a longer history than any other currency as it’s been used for over 3,000 years. This is more years than the British Pound that’s been used for approximately 1,200 years. But unlike today’s fiat currencies such as the dollar and British Pound, gold does a better job holding on to its value. Therefore, it performs its role of acting as a long-term store of value a lot better than any of the fiat currencies.
Gold is a better currency because of its limited supply, which isn’t true for fiat currencies that governments can print whenever they need money.
6. Gold Is A Great Hedge Against Inflation Risks
Inflation is a real menace that you constantly need to worry about whenever you’re investing your hard-earned money in different types of assets. Otherwise, the value of your investment will start to depreciate as time passes. You also shouldn’t hold actual cash, especially in a growing economy due to the gradual increase in the cost of living, which erodes your purchasing power.
Luckily, physical gold proves to be a great inflationary hedge because its growth rate has been greater than inflation over the years. Because of this, you should proceed to buy physical gold, knowing it’ll help you considerably lower your exposure to inflation risk.
7. Easily Transferrable To Future Generations
Physical gold is undoubtedly the best pick if you want an asset to leave behind to your children and grandchildren. This is because this precious metal doesn’t deteriorate after numerous decades and maintains its appealing shine. Therefore, it continues to hold or even increase in market value in the future, which can come quite in handy for your future generations.
Even though people throughout history have always wanted to own physical gold, it’s possible that you still wanted further persuading on why this precious metal is an excellent investment. And to familiarize yourself with whether this is the perfect investment for you, this guide has outlined specific benefits you’ll get from buying physical gold. With this in mind, you can now confidently go ahead and own this precious metal without any worries in mind.