4 Reasons Not to Invest in Gold – And Why They’re Wrong
With so many conflicting views and opinions about investments, you may have come across a few reasons why investing in gold is not the ideal choice. In reality, however, that simply couldn’t be further from the truth. Get to the heart of the matter and understand the actual value of investing in gold.
1. Will Gold Bring Serious Profits?
Although gold has a long history of inherent value, many people still mistakenly believe that gold won’t be able to provide serious profits to investors. Gold can offer, and has offered in the past, an impressive rate of return for investors. The value of previous metals will fluctuate just like any other investment, and there is certainly the potential for a big payoff.
However, what is true about this myth is that gold is more stable than many other investments. That is because gold has retained its value throughout history, and will almost certainly never drop below a certain threshold, making it a stable choice for the risk-averse.
2. Is Gold too Risky of an Investment?
Some investors think of gold as a risky investment, although that is another reason that can be dismissed as wrong. Can storing bars of gold in your closet be dangerous? Yes. Then again, it would also be dangerous to store piles of cash in your home, but no one would argue that saving money is a risky investment.
The security issues of gold storage are certainly to be considered, but investors don’t ever have to physically retain possession of the gold if they don’t want to. Gold bars or coins can be stored in bank vaults, or you can invest in gold shares on an international market if you prefer.
3. Is Buying Gold Unpatriotic?
One of the most damaging myths surrounding gold investments is that it is somehow unpatriotic. However, that could not be further from the truth. A strong reason to invest in gold is because it isn’t tied to a specific currency or even a particular country.
If you need to rely on your gold assets, you can sell them for your choice of currency in virtually any destination on the planet, since gold is so universally appealing. That doesn’t mean, of course, that you’re rooting for any one country, currency or banking system to fail.
Investing in gold merely means being savvy and wanting to protect yourself and your loved ones in any financial scenario.
4. Do You Have to be Very Wealthy in Order to Invest in Gold?
Finally, dismiss the notion that only the very wealthy can and should invest in gold. Although gold is certainly very valuable, the investment is accessible to anyone who wants to prioritize their portfolio.
You can buy gold in smaller amounts, if desired, and there is certainly no requirement that investors in precious metals need to have millions or billions of dollars available to invest.
Even after reading these four common but incorrect reasons not to invest in gold, it is clear that gold investments are a smart, secure, savvy and profitable choice for all kinds of investors.