Why You Should Be Investing in Gold Now

If you're not investing in gold, consider benefits like portfolio diversification, having a tool against inflation, holding an asset with long-term global value and having assets that aren't tied to specific currencies.
Gold and Dollars
Gold and DollarsGold has been around for millennia, and it holds its value around the world. Even in countries where the currency is no longer backed by gold, this precious metal is highly valued and used in everything from specialty coins to high-end jewelry. Countless investors from around the world have chosen to invest in gold.
 
If you’re not yet investing in gold, find out what you could be missing.

Having Assets Not Tied to a Specific Currency

If you invest in currencies like U.S. Dollars, Euros or Pounds Sterling, you’re always taking the risk that one or all of those currencies is devalued rapidly.

This can happen if a war takes place, if a banking system fails or even if a trade deal agreement goes poorly on a global scale. Gold, however, is your ticket away from this risk. Whether you hold gold bars, coins or bullion, it won’t be tied to any one currency.

That means that in the worst financial crises, gold will still hold its value and command an impressive amount of purchasing power. Whether you’re worried about immediate political fallout or you just want to ensure that your loved ones are prepared in the future, holding gold can be a smart safety net that doesn’t have a geographic limit.

An Asset With Global, Historically Lasting Value

It is hard to imagine any material with a history as impressive as gold. Egyptians used gold more than 7,000 years ago, and it was pounded into jewelry to be worn by the ancient Sumerians. Gold has a history across Asia and Africa, and it has been prized by the nobility and upper class throughout North America and Europe.

In its thousands of years of existence, gold has never lost its value. Although market trading prices can certainly fluctuate on a daily or even hourly basis, there is little chance that gold will ever stop being a valued commodity known across the globe.

A Tool in the Fight Against Rapid Inflation

Inflation is something that most people expect, but there are some instances when inflation can greatly devalue the value of your financial holdings. Even if inflation is just one percent per year, over two decades that means your purchasing power of saved assets will have gone down by a staggering 20 percent!

In years with rapid inflation, those numbers can become even less favorable. Gold, however, has a value that will adjust to currency’s inflation or deflation. Holding gold in the long term, therefore, might be a better choice than saving cash in a bank account for the same amount of time.

Diversification in Your Portfolio

If you aren’t currently investing in gold, you might be missing out on a number of diversification benefits that can add to your holdings. If your portfolio is filled entirely with investments tied to currencies, then you might be putting yourself in unnecessary risk. Diversifying with precious metals like gold is a savvy move for all investors.

Clearly, investors not holding gold might be missing out. Thankfully, the solution is clear, and Caye International Bank can help as you begin investing in gold.

Contact us today and let’s discuss how you can invest in gold.

 

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