With hundreds of billions traded daily, Gold is one of the leading financial assets worldwide. Those who invest in the precious metal not only appreciate its traditional status as a good store of value but also point out its performance against benchmarks like the S&P 500. In this article, we’ll look at what makes gold more than just jewelry material.
Good store of value
Demand and inflation are two of the main factors affecting the value of precious metals like gold. History has shown us that gold’s value has remained relatively stable. Let’s take the value of gold in 2000 to be $30 an ounce. You can likely buy the same item with an ounce in 2020 that you could buy in 2000 because of the rise in gold’s value over these decades.
It’s also worth mentioning here that gold has also performed well during the pandemic. In the past couple of years, it has outperformed the S&P 500, the Dow Jones, and silver, with only the S&P 500 overtaking the precious metal for a bit.
Highly liquid asset
Gold is one of the most liquid assets you can invest in. There is no shortage of buyers at most times. It’s also fairly easy to sell physical gold in most countries.
The low volatility of gold makes it a safe asset for conservative investors who value the safety of their money over everything else. At the same time, it’s also a stabilizing investment for investors who like high-risk high-reward assets.
Hedge against the US Dollar
The price of gold is set in the US dollar worldwide. Gold appreciates with a decline in the price of the US dollar. This is so because people sell their US dollars to buy gold, so the demand for the US dollar decreases. By holding gold, you can ensure that you’re protected from drops in the US dollar’s value.
It’s important to mention here that gold does not always outperform other assets. But, it has performed consistently for decades and remains a popular investment option globally.
If you have inherited gold or bought some yourself, keeping it in a secure place is the only additional investment you have to make to benefit from its long-term value.
At Kuber Vaults, we provide you not only with gold and silver of certified quality but also with a state-of-the-art facility for securing your valuables. You can choose from a number of locker sizes and access your gold any day of the week.