|Investing in gold|
Every year investors spend absurd amounts of money to receive the latest and greatest investment tips, leveraging a variety of tools and resources, from market monitoring email alert apps to on-call advisory services. All of this money is spent with one goal in mind – to diversify, improve, and protect portfolios. Fortunately, you don’t need a budget with a sky-high limit to accomplish what investors everywhere are striving for; you simply need to have a rudimentary understanding of gold investing. Purchasing gold is a great way to protect your investment portfolio because it offers the advantages explained below.
Every dollar that you convert into gold will not only retain its value, it may also become worth more over time. Adversely, money that you invest in other riskier instruments could actually lose value as the years pass, resulting in a loss. A lot of people tend to forget that investing is a two-sided coin – you can win some and you can lose some – but with gold you’re almost guaranteed to either win or at the very least accept a draw. When the economy is in turmoil, countries are at war, and your fiat currency is sinking into oblivion, you will still be able to buy a men’s business suit with an ounce of gold.
Consistent Long-Term Returns
During the past decade thousands of investors have earned a fortune because they made a fateful decision to purchase gold back when it still cost about $250 an ounce (only 10-15 years ago). Now, gold costs about $1750 per ounce, and is expected to continue to rise in value during the next ten years. In fact, a survey of more than 50 analysts revealed that the vast majority believe that gold will peak between 2015 and 2020. Even more exciting is that it could peak at as high as $8,000 to $15,000 per ounce. That may seem unrealistic, but when you account for inflation it is perfectly possible, and it is the opinion of many well-known investors that this will happen. By making gold a part of your portfolio now you can ensure a consistent long-term return like so many other gold investors have.
The Ability to Safeguard a Set Amount
So if gold is such a sure bet, then why aren’t all investors devoting their entire portfolio to gold investments? Well, although gold is indeed one of the safest investments you can make, there are other instruments that can be more profitable when utilised properly. For this reason most wise investors devote a percentage of their portfolio to gold, and then keep the rest of their funds available for more lucrative short-term opportunities. When the returns from these short-term opportunities are realized then they invest a portion of the profits into more stable mediums like gold and other precious metals, and reinvest the rest. The point is, with gold you can choose how much of your portfolio you want to protect, and how much you want to gamble with.
About the author: John Helmsworth is an investment writer and financial specialist who currently blogs for Gold-401k.org.