One of the best-performing assets in the last couple of years is gold, and that's no coincidence. The precious metal is seen by many as the ultimate store of wealth. For thousands of years, gold has been recognized as a store of wealth that transcends governments and civilizations
People have wanted to hold gold for various reasons. With various innovations, gold trading has evolved from physical gold to virtual trading. However, all forms of gold are equally attractive for investments. You can also find the best gilt bullion in Switzerland online.
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Here are the reasons why one should have gold in their investment portfolios:
1. Gold Is Money
One of the crucial promises of money is that it serves as a long-term store of value. Gold fulfills this promise better than any currency. Look how much purchasing power all major government currencies have lost compared to gold. Physical gold has been the best long-term store of value.
There were periods wherein the short-term currencies grew in value more than gold, but over the long-term, this chart demonstrates exactly why the rich have always held it in their investment portfolio.
2. Gold Investments Act as an Inflation Hedge
The hedge against inflation is the traditional motive behind the investment in gold. The yellow metal serves as an inflation hedge in the long run.
When inflation rises, the value of the currency goes down. Over the long term, almost all major currencies have depreciated relative to gold.