Why invest in gold?

There are five key reasons people invest in gold and silver

1

To take advantage of a secure and tangible commodity in which demand is generally higher than supply.

2

To protect assets against inflation and/or a decline in currencies.

3

To diversify an investment portfolio.

4

To preserve wealth over a long period of time.

5

To protect assets in periods of geopolitical and financial unrest.

 

Diversification: The key reason to invest in gold

Advisors agree that diversifying the assets you invest in is one of the best ways to control your exposure to risk. This applies both if you are a seasoned professional or you are relatively new to investment.

Gold is similar to property as it is a physical asset. However, there are two key differences between the two – gold is very portable and liquid. Gold is bought and sold very easy by calling the New Zealand Mint Bullion Exchange or any other bullion dealer worldwide. Property on the other hand takes time and effort to buy and sell. Gold is a very compact way to store value – the value of a three bedroom house can easily fit into a shoe box.

Gold tends to reduce overall risk in an investment portfolio. Why? The most effective way to diversify risk and protect wealth created in stock and financial markets is to invest in assets that are negatively correlated with those markets. Gold’s asset performance has traditionally been the most negatively correlated to stocks.