4 Surprising Benefits of Investing in Gold
There are plenty of great reasons to invest in gold, and many people are already familiar with them. It is no secret that gold has had an incredible history of value, and one of its biggest benefits is that it is not tied to any one currency, which means that it can be used for its spending power in almost any location around the world. However, potential gold investors should also be aware that there are still some surprises. Here are some lesser-known benefits of investing in gold.
1. India is the World’s Largest Consumer of Gold
In and of itself, this might not seem like a news-worthy piece of information, but it is key for investors who wonder about the long-term value of gold. India is one of the largest and fastest-growing economies in the world.
Previously, China was the biggest importer of gold, but not India is catching up. This reveals that many economies outside of the western world attach substantial value to gold. The more that people, businesses and entire government covet gold, the higher its value will be, which is ideal for those who buy gold for investment purposes.
2. The Value of Gold Rises Faster Than Wages
It is important to view gold in terms of actual currency, especially when you are getting ready to buy or sell gold yourself. However, its also good to see the historical value of its purchasing power when compared to average annual wages. Since 1971, gold has become increasingly more valuable even when factors like inflation and currency exchange are taken into account. If trends continue, gold purchased today could be worth substantially more decades or centuries from now.
3. Humans Have Mined More than 160,000 Million Tons of Gold to Date
This number might seem surprisingly, but what is more surprising is that roughly 80% of the world’s gold still remains buried underground. Despite new mining technologies, however, reaching that gold is becoming increasingly more difficult. The readily accessible gold, to the tune of 160,000 million tons, has already been mined.
What remains will be challenging to obtain, serving as a kind of limit to the gold available on Earth. This is also a kind of safety net that might prevent too much gold from ever flooding the marketplace and reducing its overall net worth.
4. Gold Bullion Prices are Setting Record Highs
One thing that often overwhelms investors is the sheer number of gold types that you can invest in. You might want to buy shares of gold on an international market, gold coins to keep at home or gold bullion to keep in an offshore account. While all can be excellent choices, it is gold bullion in particular that is setting record highs in recent sales.
Even the world’s largest hedge fund, valued at over $150 billion, has more than seven percent of its total assets invested in gold. Gold is a hot-ticket item of late, and sales prices certainly do reflect that.
If you’re interested in banking or investing offshore, gold may be exactly what you’re looking for thanks to a variety of expected as well as surprising reasons.