About 3 years ago I decided to venture into the world of gold investing. At the time, the price of gold was around $1,200 an ounce. Over the years the price of gold has gone up and gone down, although if you fast forward to now in 2016, the price of gold is just around $1,300.
Gold as a precious metal is one of the most recognized worldwide and is known by many countries for its history and great value. For more than a century gold has experienced very generous gains throughout the market. It has also experienced drops but has been fairly stable over the past couple of years with a slight increase in 2015/2016.
Below is a brief overview of 5 reasons why you should consider investing in gold for 2016 and beyond.
Demand Is Increasing
With so much access to social media and websites like YouTube. There are more people who are being educated on the long-term benefits of investing in Precious Metals. As a result, many investors who are looking to protect their wealth are starting to move more towards gold.
Were you aware that China and India are two of the largest gold consumers and importers in the world? China is also one of the few countries that allows you to keep your savings in gold bars at your bank.
Keeps Its Value
Gold is an investment / commodity that has been known to keep its value for centuries. It is seen a fairly steady and consistent increase ever since the year 2000 and has continued to do well so far in 2016.
Financial & Geopolitical Uncertainty
It’s strange however, during any form of financial or geopolitical uncertainties. Gold is actually one of the very few commodities that can maintain its value during times of recession or depression. Very few commodities are capable of such staying power especially during such times of uncertainty.
Adds Variety To Portfolio
Investing in gold is a great way to diversify and help offset the tides of your other investments in your portfolio. I don’t have much experience with stocks, but they say when gold is up stocks are down and vice versa. Being able to add something as strong as gold could provide you more security and confidence with your survival or retirement strategy.
Volatility Of The US Dollar
In roughly 2013/2014 the US dollar got to the point where it was valued less than the Canadian dollar. This isn’t the first time that this has happened, but we doubt that it will be the last. During 1998-2008, the US dollar was struggling versus other currencies. As a result, gold acquisition & the need for security started to increase. As you could imagine, so did the price of gold.
Unless the United States and the rest of the world decide to move towards a Global Currency, the fate of the US dollar is still very volatile and up in the air in my opinion.