You may have heard people in the news say that you should consider investing in gold to diversify your portfolio and because gold may increase its value, but is it really a good option for you, who should buy gold?
Precious metals have always been a form of money and they have a lot of real value, but let me tell you the top reasons why you should consider investing in precious metals:
- 1) For centuries Gold has been a form of money that can be exchanged, carried and is accepted all over the world.
- 2) With the current financial turmoil around the world there is a lot of concern on what will happen next?, when is the next crisis going to hit? is there going to be an hyperinflation or a deflation? all those questions are making people doubt about the sustainability of our current financial system, therefore many investors are buying gold to secure their wealth.
- 3) Discoveries of Supergiant gold deposits have been declined, in the long term this might increase the value of gold because its a limited resource.
You may have also heard about the recent bailout problem with Cyprus where the country confiscated money from their savers so they can pay for the bailout. This situation can happen in any country that has serious debt problems, once the financial system of a country is going to collapse, the government will do anything in order to save the country. So you are better having your money invested in gold that in a bank account.
If you have decided to buy gold to diversify your portfolio or to secure your wealth, the next step is to look for a dealer that you want to buy from. However be careful not to buy just gold certificates or paper ETFs, you need to buy physical gold and store it yourself. As long as you don’t have the gold in your hands you don’t own it, a bank can issue a thousand gold certificates and only have enough gold to support a hundred certificates.
You should look at your options either gold or silver are great investments, gold coins are the easiest form of precious metal to invest in because they are easy to carry and to store. Do your research don’t buy from a company that is new, always look for dealers that have years in the industry.