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Gold – Has it Seen Better Days or is it Still a Sound Investment?

Published On July 17, 2018 | By Clare Louise | Finance

We have been using gold as a way of investing for centuries. Its history goes all the way back to 3000 BC. Ancient Egyptians used it for making jewellery. However, it wasn’t until more than 2000 years later that it began to be used as currency. A gold coin was introduced by merchants who wanted a standardised form of payment. Gold was already used worldwide for making jewellery so there was no problem with it being accepted. It rapidly became a symbol of wealth all around the world.

Gold as an Investment

Gold is no longer used as a form of payment, and the currencies used around the world are no longer backed by this precious metal. Many Central Banks still have gold on their balance sheets. Even the International Monetary Fund has a supply. In fact, one fifth of the world’s supply is held by this type of organisation. There are many people who consider gold to be an important part of the modern economy. It has been used to preserve wealth for thousands of years. Whereas money does not hold its value. $35 in your pocket 50 years ago is not worth the same today. Whereas gold has appreciated in value.

Gold is used by many investors as a hedge against rising inflation and the declining value of a currency. When inflation rises, gold usually appreciates in value. A drop in the value of a currency makes gold cheaper for investors in other countries.

Gold is also considered to be a safe haven in times of political and economic uncertainty. This is because throughout history in times of trouble, people who held gold were able to protect their wealth.

Different Types of Gold Investment

It is much easier for people to invest in gold today, than it would have been many centuries ago, because there are many different ways to do it. For example:

  • Gold jewellery
  • Gold bullion
  • Gold coins
  • Gold futures
  • Gold ETFs
  • Gold mutual funds
  • Gold companies

Is Gold a Relic or a Treasure?

There are people who sit on both sides of the fence when it comes to the value of gold in the modern world. Gold investors have been arguing about this question for many years. There are investors who consider it to be a relic that no longer holds the same qualities it did and is only good for making jewellery. However, there are an equal number of investors who consider it to be a vita part in any portfolio. There are advantages and disadvantages to choosing gold as an investment. Which is no different than anything else. if you’re interested in purchasing gold bullion for your portfolio, Indigo Precious Metals will be able to help.

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