Is gold a good investment? Gold is a precious metal with long and glorious history. It sees usually as a good resort to hold the value itself in investment. Therefore, it can be a safe heaven item, no matter in price resort or investment. And through the years, it has always served as a hedge against inflation and the erosion of major currencies. What’s more, Gold was once the currency in circulation back at ancient times by weighing. However, with time flying, is gold a good investment in contemporary? Have something changed in the way we don’t see through? How come? And what for?
Brief Gold History of Holding Value
Since ancient times, gold is the representative of fortune and high esteemed status. Starting from its color, gold possesses an unique color unlike other metals, a bright, slightly orange-yellow. Gold used to be the color of emperors in the past. Then for the preserving need, it won’t corrod for it resists most of acids. What’s more, it is relatively precious compared to other metals possessed its same features. Since 560 B.C., it started to act as currency in circulation and used as a media to trade things in market. With continents discovered from time to time and trading business growing prosperous, the urgency of currency need makes gold a measure to weigh in anything tradable.
Why Is Gold A Good Investment?
With its history of being currency and a value resort, it seems destiny to make gold a good investment in long-term. Now, let’s get more specific about why gold is a good investment.
A Safe Heaven Choice
For people get middle in the finance, it is definitively not strange to meet ups and downs in any investment. When ups occurs, it is always full of joy. However, the loss of investment is not always bitter sweet. Therefore, lots of investors are prone to invest in gold as so to seek the last retreat to hold their position in investment process. Back to those times, such as in the deflation and inflation period, gold prices soar all the time aside by the cost of living increases, even other prices drop sharply. Therefore, to invest in gold is always worthy in view of the history revelation.
Furthermore, gold prices share intimacy with US Dollars. Known as the reserve currency in the world, US Dollar can be off its attributes. It means losing its advantage sometimes when bad things occur. At that time, people would flock to buy gold in as a good way to preserve the value and ease their loss.
Gold Prices Still Promising Though Hit Some Bumps in Road
Lately, gold seems on the slide of it price due to Ukraine related things and the slight dilemma met by the United States. However, the announcement that they will not get in middle of Ukraine situation is made by Biden, the current president of the United States. As he put that gold prices will be immune from war factor gladly. Actually, gold prices are benefit form Ukraine as a result of it climbing to next level.
According to the big map of gold prices in the past, since it hit the peak at 2020, it seems to retreat a bit. However, from the chart revealing the gold prices, we can infer that there is a limit, and the gold prices will definitely bounce back with its increasing demand.
Gold Can be Liquidated Easily in Constrain Supply
Gold is ideal in the way that it sells itself easily and carried with you. Jewelry dealers will definitely purchase it from you once you walk into their shop. And that is not purely out of the value beheld itself by gold, but also the constrain supply doomed by mining process.
We all know that supply bonds with demand, and they stimulate each other. In previous years, gold prices are rising sharply due to the emerging market economy. As the demand for gold increasing, and the supply of which is constrained, the value of gold must go up in long-term. And the attribute of being liquidated easily also stimulates the demand and supply of gold.
Just as a gold coin has two sides, the gold investment has two sides too. But truth is not always sitting in the middle of two sides, at most of time it leans to one side. In any investment, lose and win intertwines with each other, and investors cannot avoid neither of them. But from a long-term perspective, gold investment can be a steady and gaining invest way.