Gold has become a very present element in investment portfolios, as an excellent alternative to stocks and bonds. It is a refuge asset that grows in times of crisis, and that, in addition to being a good investment asset, is also a consumer good capable of generating profits in good times. Many investors today consider buying gold for the first time but have serious doubts about its profitability. For this reason, in this post, we want to emphasize the role of gold as one of the most profitable assets.
Buying physical gold is a very interesting option for the most prudent investors. It is an asset that has been present in our lives for more than 6,000 years, and has always been universally appreciated by all civilizations and considered a symbol of wealth.
Investment In Physical Gold And Profitability
Previously we already talked about gold as a long-term store of value, and it is that the investment in ingots or bullion coins guarantees that the buyer can have the exact amount of the precious metal for which he has paid. In addition, the advantages of this form of investment are very notable:
- Immediate liquidity, anytime, anywhere.
- There is no counterparty risk.
- It does not depend on the solvency of third parties, since it has value in itself.
- It does not lose its value, regardless of changes in its price.
- In the long term, its profitability usually exceeds that of other assets.
It is very common for investors to resort to gold as a complement to other types of investments to diversify their portfolio, and thus be protected against inflation in times of instability or crisis.
Why Do We Say That Investing In Physical Gold Is Profitable?
Taking all of the above into account, we cannot fail to highlight investment in coins or gold bars, as a haven asset that increases its value when the stock markets fall and in the face of economic crises. The opposite is also true, so when stock markets are skyrocketing and the economy is at its best, the price of gold falls.
Investing in physical gold is profitable and the benefits it brings confirm this:
- Security: it is a value that has always been praised throughout history. Whether we invest in gold bars or bullion coins, it is a safe investment.
- Ease of sale: as it is a globally recognized asset, it can be sold in all markets. In some countries like China, for example, investment in precious metals is even more valued than in the West. No matter where we are, we can always sell our gold bars or coins.
- Stability in its value: indeed, the price of gold fluctuates continuously over time. However, its value maintains a higher stability than the stock values that occur in most markets. This is so because even with their upward or downward variations, they are normally smoother than those suffered by other less secure assets.
In addition to all this, it should be noted that gold moves in the market in a very different way than other assets such as stocks or bonds, which generate dividends or interest. Gold does not earn interest or dividends, but investing in gold is profitable and can lead to capital appreciation. It must be remembered that, throughout history, it has been shown time and time again that when problems arise with currencies, the precious yellow metal rises rapidly in price, sometimes being the only asset that produces profits.