This is a very good question that rings in many people’s minds when they are seeking to make an investment. To know whether gold stands as a good investment, you need to understand what you are looking for in an investment. If you are looking for a way that can help you double your investment in less than six months and at the same time willing to lose your initial investment to achieve this, gold can’t possibly be the best investment for you. Gold, just like other investments has a trend that needs to be understood clearly.
What makes gold stand as one of the most significant investments is the ability to store wealth overtime. This is caused by the fact that gold coins can build numismatic value. This only means that the older the gold coin is, the more it is worth. With the low maintenance costs, this is very possible. Once you keep your gold in a safe place free from damage or theft, the maintenance cost is simply nothing. This is because it does not rust nor does it tarnish. More to this, it holds its value even under the most extreme economic circumstances.
Physically, gold, can be said to be independent of any business. This means that gold will maintain its value even after the company that manufactured it is liquidated or goes out of business. Other major investments such as bonds and stocks are dependent on the issuing company. This makes them very volatile as they can lose value overnight depending on the company’s dwindling performance. The ability of gold to stand independently with its low maintenance cost makes it a good investment for any investor as this guarantees them of a valuable asset.
Making any investment does in no way give you assurance of increased profit. However, this is relatively possible if one has the right business strategic planning. One thing you can always be sure of is that if you lend your money to a good investment, you will always be ahead of success. Investing can be likened to betting. The only difference is the fact that in investments, you can always work your chances. The chances will come in different forms; business planning, business management and conflict management. More to this, you should always be in a capacity to choose the investment that can shake rest of your business.
The value gold holds makes it among the greatest investments you can ever hold. On close observation of the market trends, you will realize that when the stock markets tumble, large investors, banks and financial institutions more often than not flock to purchase gold heaps. This is primarily the reason behind the spot prices of the precious metal increasing significantly. When paper backed and fiat currencies flounder, gold will usually thrive as it continues to be the only currency holding a true value. In the last decade, gold has made up to 400% gains. This obviously makes it the king with paper assets being peasants.
When making the investment, you ought to have a well researched strategy. One secret investors have always used and earned high profits is buying assets when their value is extremely low. This is a time when the asset is absolutely hated, and small investors are quickly disposing it. With everyone willing to sell their share, the prices will definitely go down. This is what happens to individuals who jumped into the gold market when it was hot between 2009 and 2011. Though the prices have only gone down by $700 from their 2011 highs, some investors are quickly exiting the market. The major players in the market, however, seem not moved. This is because their focus is not only on the current trend but also on the future the business holds. With the need for this metal never dying all over the world, one can always expect the markets to shoot. This may not be anytime soon, but you can always be sure it eventually will. Unlike other investments whose downfall can see them being scraped off the market, gold is a universal investment that has stood the test of time.
Throughout the ages, the precious stone has remained to be the universal store of value. This is mainly due to the simple fact that is very stable. The value gold holds is in no way set by its issuers promise to pay. This is because it is mostly protected from the market fluctuations which are unpredictable. Many investors have regarded possession of gold bullion as one of the safest and best investments. Gold investment, contrary to paper asset has a quite stable price that can hardly get to zero. Not even with the most extreme economic and geopolitical environments. Lucky enough, no government in the world can ever confiscate actual gold, and this makes it very independent of the occurrences.
Over a long period of time, investors have regarded gold as the best hedge against inflation. As the prices of major goods used globally rise, the value off paper money will definitely go down. In such a situation, gold remains to be the only thing whose value be said to be stable. Simply speaking, when you need more money to buy the exact number of goods that could have been accessed at a lower number in earlier economic conditions, you will need the same or even less number of gold coins to buy a similar number of goods. This makes gold gain some superiority in the business.
The one unique characteristic of the gold market that sets it apart from other investments is its in-elasticity of supply. The supply is very inelastic to demand and thus the major country’s’ gold production will hardly affect the gold pricing in the market. This only means that massive production of gold coins by one country can’t only make the prices go down. At the same time, one country can not hold back their gold coins just to make their demand go up and consequently affect the prices.