If you're looking for a way to diversify your investment portfolio in these uncertain economic times, buying gold bars and coins might just be the answer you're seeking. Gold has been in existence since around 800 B.C. and has a history of keeping its value through wars, shifting civil boundaries and centuries of uncertain economic news. However, its dependability as an investment is just one of the many good reasons for investing in gold.
Why you should invest in gold
1. The price of gold goes up when the value of the dollar goes down. Historically, the price of gold has increased as the value of the U.S. dollar compared to other world currencies has decreased.
2. Gold holds its value. Unlike paper investments, gold has intrinsic value that has appealed to investors, builders, designers and jewelry collectors for centuries. This value is also based on the spot market of the metal itself, so there is little chance of gold becoming worthless like paper investments can. The value of gold has survived the fall of the Egyptian and Roman empires, two world wars and a myriad of economic ups and downs. It's safe to say that there will always be a demand for gold.
3. Less gold is being mined. While demand for gold is increasing, the amount of new gold being mined in the world is steadily decreasing. Less supply and more demand (in any product) generally translates into higher value. This will likely be the case with gold.
4. Buying gold is a great way to diversify your investment portfolio. Gold is subject to different market conditions than more common investment products like stocks and bonds. This means that even when your stocks are losing money, your gold bars and coins could be increasing in value. This type of diversification helps to mitigate your overall risk.
5. Gold is portable. One last advantage to gold is that you can carry it with you. Banks, companies and even countries may fail, taking your paper investments with them, but you can put your gold coins in a suitcase and carry them with you.
While investing in gold coins and bars isn't the right investment choice for everyone, diversifying in gold bars and coins can help reduce your overall investment risk, historically holds value through all kinds of civil and economic unrest, and fights inflation. Gold is certainly worth considering for your investment portfolio. For more information, speak with experts like Rocky Mountain Coin Inc.