There are five key reasons people buy gold or silver:
- High demand - to take advantage of a secure and tangible commodity in which demand is generally higher than supply.
- Inflation - to protect assets against inflation and/or a decline in currencies.
- Diversification - to diversify an investment portfolio.
- Wealth Preservation - to preserve wealth over a long period of time.
- Asset Protection - to protect assets in periods of geopolitical and financial unrest
Gold is similar to property as it is a physical asset. However, there are key differences between the two – gold is very portable and liquid. Gold can be bought and sold easily through New Zealand Mint 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.
Advisers agree that diversifying the assets you invest in is one of the best ways to control your exposure to risk. This applies if you are a seasoned professional or you are relatively new to investment.
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.
Please note that while we have provided precious metal information on our website about buying bullion this is no substitute for independent advice, so please do your own research.
To take advantage of a secure and tangible commodity in which demand is generally higher than supply.
To protect assets against inflation and/or a decline in currencies.
To diversify an investment portfolio.
To preserve wealth over a long period of time.
To protect assets in periods of geopolitical and financial unrest.
Have more questions? We are more than happy to help. Please get in touch with us via our contact page and we will get back to you as soon as we can.Get In Contact