Gold, unlike money will always have an essential value as it is more than simply a piece of paper. Gold’s inherent value demonstrates its significance in featuring in ones financial portfolio.
Another reason includes the fact that gold production is steadily declining as demand for gold is overtaking the supply. The supply issue will continue as it takes approximately seven years of preparation to open a new mine.
Other reasons include gold’s ability to evade the negative effects of inflation. As inflation rises, the price of gold will usually follow. Also, is the fact that gold is purchased and exchanged in US dollars which means that if the value of the dollar deteriorates; the price of gold will continue to rise. In fact, the strength of the dollar is weakened significantly by its loss of gold backing. Gold has become a secure place for assets because throughout times of political and economic unrest, the price of gold will usually flourish and this is an important reason as to why gold is an important investment.
As well as this, it is a sign of the benefits of buying gold from the growing supply being purchased by China, India, Central Banks and wealthy citizens. Last year, central banks added the most gold to their reserves since 1964. Also, China plans in the future to exclusively buy gold.
Another essential reason to invest in gold is the fact that a broad range of investments can greatly improve your portfolio, as investment advisors realise, and gold is perfect for this as when stock prices decline, gold prices rise. This makes a huge change from most other assets which are usually very strongly correlated to one another.
If you would like to know about buying gold, feel free to contact us today on 01202 611061 or email info@kkbullion.co.uk