Investors purchase gold for many reasons. It could be for a hedge, for security, or an immediate investment. What actually are the best reasons to invest in Gold? Studies affirm that gold is a better hedge from a crashing stock market.

Gold (Au) as a Hedge

Hedges are actually assets that counteract deficits within another asset category. Various investors purchase gold to hedge from the drop of a currency exchange, generally the U.S. dollar. When a currency declines, it produces excessive rates in imports and so as inflation. Consequently, gold is likewise a security from inflation.

To illustrate, the cost of gold doubled (or even more) between the years 2002 and 2007. Right from $347.20 and $833.75 an oz.. That is since the dollar’s worth as assessed next to the euro dropped 40% in that exact time. Watch the video below by Ben Felix about Investing in Gold

Investing In Gold

Post Author: Fiona Nadine

RSS Feed

  • Precious Gems Can Be Good Investment
    Gemstones are also becoming increasingly popular as investments. However, trading in valuable stones is complicated and requires tips from professionals. Laypeople cannot determine the value Their great disadvantage as an investment has something to do with the uniqueness of the stones. It is not as easy for laypersons to determine their value as it is […]
  • Tax Break on Unemployment Benefits : Who Qualified to Receive Refunds in 2022?
    The tax season ended last April 18, yet many are still trying to get information on IRS code 971, the IRS website’s transcript for an unemployment tax refund. However, many are in for a disappointment since there is no tax break applicable on unemployment benefits availed in 2021. Anyone who received notice about unemployment benefit […]