INVESTING IN GOLD
Overview of Gold as an investment:
*The gold is an rare metal that found in earth so it is hard to make gold artificially.So it has a better value among the world
*It is easily tradable material in the world
*It is also an safest investment because the year after year.The demand of gold increasing continuously.
*It is flexible to buy and sell gold.In fact we can buy a gold in any country and able to sell in another country.
*We don't want a broker to sell or buy gold.So we don't want to pay brokerage for anyone
*So we can consider gold as an investment for decent return for our investment.
*Investing in gold for your portfolio.It is strategic way to diversify the risk in your portfolio.
Pros and cons:
*Investing in gold have some pros and cons.So let's see some pros and cons of investing in gold
Pros:
Gold hedge against Inflation:
*The gold is an traditional style of investing.So gold converts a value of money in terms of metal.So it remains increasing and don't affect by the inflation of currency value.
*Even if the inflation increase the gold remains it's value or increase.
Safest asset:
*If a any economic downfall happens it doesn't effect the gold also it increases the demand of gold due to that downfall.
*So the investor of gold can get the return and affected by that downfall.
*The can able to provides as a securities in any bank or financial institutions to get loan.
*So gold is also used to get a credit without any hassle.
Diversification in portfolio:
*Investing in gold is a best way to diversify our portfolio risk even if a stock market or bonds are down then we have best option to diversify it in a gold.
*It completely cover your risk in portfolio.Our investment is became safe not fluctuated.
Liquidity:
*The gold have high liquidity in global markets.
*So it offer flexibility to investors.So it can traded anywhere in the world.
Secured asset:
*The gold is an physical asset so it doesn't depends on company or government.
*So it doesn't depends on norms and conditions of any company or government.
*So gold is considered as one of the safest way of investing.
*It always provide its sense of security at everytime.
Cons:
Storage:
*Gold is an physical asset so it takes some space to store it.
*We have allocate and secure the gold in some specific space.
No yield income:
*Gold does not yield income like stocks and bonds and it does not generate income like dividends or interest like stocks and bonds
*It is an less income generative.
Volatility:
*Gold price are volatility in short terms due to factors like bank interest charge, currency fluctuations or market sentiments.
*Gold is best for long term and short term it may volatile.
Conclusion:
*Overall, while gold can be a valuable part of an investment strategy, it is important to consider both its benefits and limitations within the context of your overall portfolio goals and risk tolerance.
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