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

  • What to Look Out for When Investing in Precious Gems
    People invest in gemstones for wealth preservation and some for collection. When investing in stones you cannot avoid being scammed and getting fake stones. When you invest on precious gems take note of the following: Do your own research Be diligent. Scrutinize the stones for any cracks or damages. Build your own knowledge, inside and […]
  • 5 Reasons Why Life Insurance is a Great Investment
      Whether you’re married with kids or have a partner or other relatives who rely on you financially, having life assurance is important. life assurance provides money, or what’s referred to as a benefit, to your chosen beneficiary after you die. It can give your loved ones access to money after they need it.   […]