HomeInvestmentBenefits of Holding Gold Bullion in Your Investment Portfolio

Benefits of Holding Gold Bullion in Your Investment Portfolio

Gold is one of the most respected metals in the investor community. People have been investing in gold for centuries. The first gold coin appeared in 800 BC, and 300 years later, pure gold coins appeared on the scene.

Benefits of Gold Bullion in Your Investment Portfolio

To make things easy for you, we have discussed the benefits of holding gold bullion in your investment portfolio.

1. Beat Inflation

One of the primary reasons for people investing in gold bullion is its ability to beat inflation. Gold has been able to maintain a good record as a safe investment vehicle. Inflation reduces the spending power of the dollar. Still, gold can beat inflation and prevent loss against loss of face value.

If you look at the pricing trends, gold prices move in the opposite direction of the dollar. If the dollar weakens, gold prices are bound to rise. Even if gold prices are not moving upward at a higher rate, the gold prices are pretty reasonable which will help beat inflation.

2. It Is Equivalent to Money

Though gold is not used as a currency, it still holds good monetary value. It has a longer history than any modern currency. Gold also has long-term store value, which has been stable or moved upwards since the times are known. The price of gold fluctuated, but it has remained priceless over a long period.

All modern currencies that exist today would lose value over time. Suppose you have a 20-year-old 10-dollar note. In that case, there is a possibility it does not hold any value today because the bank does not accept the old currency design.

Though such instances are rare, such a situation cannot be completely ruled out. Such a thing does not happen with gold. Click here to know how other currencies have depreciated in comparison to gold.

If you have old gold bullion, it will still command a market price equivalent to its weight and purity.

3. It Is a Tangible Asset

Gold bullion is something you can hold in your hand. It cannot be said with other forms of investment. Modern paper currencies are destroyed by water, fire, and even time. Gold is indestructible, and fires and water do not diminish its value. Unlike other investments, gold does not need any maintenance, feeding, or any particular care. Just buy and store it safely.

4. It Does Not Have Any Counterparty Risk

Gold bullion is a safe investment, as there is no counterparty risk. In simple words, there is no paper contract or financial agreement needed to determine its value. Also, there are no middlemen required to uphold its value. The gold bullion is a complete investment in itself, and it is not any other entity’s liability.

Gold bullion makes your investment portfolio strong because gold prices have never touched zero in the last 3000+ long history. If you look at the increasing price trend of gold, there are negligible chances such a thing will happen in the future.

5. It is Private and Confidential

Gold bullion investments can be private and confidential. If you want, no one will know you have purchased gold bullion. There is no other investment that provides such benefits.

These are some of the benefits of holding gold bullion in your investment portfolio.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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