There are many reasons to buy gold and silver, but one of the most repeated is for their supposed safety. This metal acts as a refuge in times of crisis, since the price of gold tends to be more stable than that of other financial assets.
This is not to say that gold cannot fall, far from it. Everything will depend on when you start investing goldco reviews. What happens is that in the long term its value has risen. In part, all of this is due to the fact that gold is closely linked to the price of the dollar, so that when the greenback suffers, gold rises, and vice versa. Something similar also happens with inflation. When money in circulation increases, so does gold, only six to nine months late.
Beyond its value as an investment and safe-haven asset, gold is used in jewelry and electronics, resulting in a constant demand for the metal. As it is a finite good, this causes its price to tend to rise.
If you do not have much knowledge about this matter, perhaps it is best to look for a financial advisor to help us get the best return on our investments. Therefore, in Finect we leave you a free tool in which you can find an advisor that adapts to your needs:
Advantages and disadvantages of investing in gold
Investing in gold and silver can be a good option to cover the risks of our investment portfolio, but that does not mean that it is not exempt from having its positive and negative points
Advantages of investing in gold
Among the benefits of investing in gold is its already mentioned stability, although there are others:
- Saving in physical gold gives you an asset with total liquidity. You can sell it at anytime, anywhere in the world. It is the closest thing to physical money. Of course, it is possible that the sale price of gold does not always reach the purchase price.
- Gold is not subject to political uncertainties.
- It allows to diversify the investment portfolio.
- A small amount can be of significant value, making it easy to store in the case of physical gold.
These are the benefits of investing in gold that have made it a safe haven asset and one of the first alternatives that savers look at when thinking about security for their money.