There are a number of reasons to invest in we buy gold, from the physical shine it offers to its proven record as a safe haven during economic turmoil. An ounce of gold can still buy you a suit today, just like it could hundreds or even thousands of years ago (a Roman toga, for example). Its stability as a store of wealth has made it a favorite investment in every time period. It’s also an effective hedge against inflation; while inflation decreases the value of paper money, it doesn’t affect the price of gold.
Its innate beauty is something to behold; the sheen of gold speaks to our need for comfort and nurture. Gold’s unique ability to simultaneously exist as something quantitative and tangible while embodying the qualitative and ephemeral makes it an ideal asset for high-net-worth individuals looking to diversify their portfolio with hard assets.
Geopolitical Risks are Rising
Gold has always been a good hedge against the risks of social, political, and financial instability. The world is currently facing unprecedented risks, including the rise of China and Russia, continuing ultra-loose monetary policies, and uncertainty and chaos caused by Brexit and the Trump administration.
Many investors believe that a portfolio should be at least 5-15 percent in hard assets, including gold coins. The value of gold is timeless, so it will outlast generations—and if you keep your coins in secure storage, they will outlast you. Unlike other investments, gold doesn’t need to be fed or watered. And it’s virtually impossible to steal. It’s no wonder that central banks and millions of investors all over the world are buying gold for their Reserves.
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