Gold is cherished throughout the globe for its value and rich history. Unlike paper currency, gold has maintained its value throughout the ages. With gold becoming more readily accessible, investors can use gold to boost an extensive range of individual investment strategies and risk tolerances. The disconnect between gold and other assets renders gold to being used in diversifying portfolios and as a means of protection against financial instabilities and inflation. Hence, gold is considered to be a smart investment.
An investment in gold is primarily due to two reasons:
- Desire to gain money.
- Desire not to lose money.
Gold has earned unique properties as a precious asset to possess. Investors of varied experience are attracted to gold as a solid, tangible and long-term store of value. Gold serves as a high-quality, liquid asset that can be sold when other monetary assets suffer losses.
Note: Allocating 2-10% of your portfolio to gold can enhance the performance of it considerably well.