With economic uncertainty on the rise, more investors are turning to gold as a stabilising addition to their portfolios. The precious metal has served as a store of value for thousands of years thanks to its intrinsic qualities and global appeal. Here are five key reasons why investing in gold could be a wise financial move for you right now.
Gold Performs Well During Economic Downturns
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Unlike stocks and bonds, gold values tend not to plummet during recessions or market crashes. That makes the precious metal a strong diversifier and a hedge against turmoil. During the 2008 financial crisis, gold prices rose while most assets tanked. Gold stabilises and protects portfolios when markets get rocky. Its value isn’t tied to any single country or economy.
Gold Protects Against Inflation
Rising inflation erodes the purchasing power of currencies. This makes hard assets like physical gold more desirable. Historically, gold prices trend upwards along with inflation averages. Adding precious metals to your portfolio can help offset inflation draining the value of your cash. Gold has maintained its intrinsic worth for thousands of years, through wars, depressions, political crises, and collapsed empires.
Gold Bars Are A VAT-Free Investment
In the UK and EU, purchases of gold coins and bars are exempt from Value Added Tax (VAT), making them more cost-effective than other commodities. You get to keep more of your capital invested compared to assets like silver or platinum which require paying 20% VAT on each transaction. VAT exemption makes gold an appealing asset class in Europe. If you want to learn more about this and if you want to buy gold bars, visit Physical Gold. They offer a wide range of pure 24-carat gold bars that can either be delivered fully insured to your door or kept in secure vault storage in the UK.
Gold Is Tangible And Portable
In turbulent times, many investors take comfort in owning tangible assets they can see and touch, rather than just digital entries. Gold’s physicality provides that reassurance. And in the unlikely event you ever need to move your holdings, gold is extremely portable. Bars and coins worth huge sums can be easily carried or hidden. Compare that to the difficulty of moving property or lumbering works of art.
Gold Is A Time-Tested Long-Term Investment
Unlike flashy assets that peak and crash, gold offers stable, sustained growth. There’s none of the anxiety that comes from waiting for the next cryptocurrency crash, for example. Its price increases as time passes and more gold is mined and consumed. Limited supply increases scarcity. Being less reactive to market whims, gold suits patient investors with longer time horizons. Compound interest allows gold investments to appreciate substantially over decades. The metal has served as wealth and currency for thousands of years.
In uncertain times, solid investments provide peace of mind. For millennia, gold has provided stability, protection, and enduring worth to shore up financial futures. If reducing volatility while still growing wealth appeals to you, gold merits consideration for your portfolio.
