Why Invest in Gold?

Gold as a safe haven

Gold is one of few financial assets that is not matched by a liability or debt, whose value is not dependent on the performance of governments or corporations. In unsettled times, it becomes a safe haven. Recent examples of this safe haven status can be seen during the stock market crash of 1987, the 2001 terrorist attacks in New York, and the first quarter of 2002 with Japanese investors buying gold, as they awaited the withdrawal of government guarantees on bank deposits. In an uncertain world, it pays to hold gold.

Gold as a hedge

A country's currency can be printed endlessly leading to inflation and reduced value. Gold cannot be. The gold supply is limited to the amount refined per year, and so is not subject to the same inflationary pressures. Consequently, in times of inflation or falling currency values, gold acts as the ultimate hedge for the markets.

Gold is virtually indestructible

Gold cannot be destroyed, neither by fire, nor by maltreatment, nor by wars. It is this property that allows gold to be stored, saved and used as a form of currency in times of financial instability, with the confidence it affords.

Gold is widely used in modern industry

Gold has not only a monetary side but is also used in a variety of industries such as dental, jewellery, avionics and electronics to name but a few. These industries always need gold, providing a minimum stable level of demand.

Risk Diversification

Please click here to download a PDF explain how gold can be used in Risk Diversification.