Gold, as we know it, is a very valuable type of chemical element. It’s an expensive substance that has lasting values, it’s indestructible, exquisite, and has always been deemed to be a safe investment. For thousands of years, gold has been holding a unique place in different industries such as fashion, architecture, trading, cuisine and arts. Wherever you are in the world, gold is considered valuable that can be traded easily – in fact, trading gold around the world has been widely known throughout human history. For many, gold has been a go-to investment, a prominent safe haven asset, a commodity that has inherent value and worth and something that is equivalent to wealth and money.
Do you plan on buying gold? Why should you buy gold? Read on to learn more.
10 Reasons Why You Should Buy Gold
- Gold is an asset that can last thousands of years. Because it’s indestructible, you can simply store it to preserve your wealth, and maybe transfer it on to your family’s next generations. Either way, gold will stay the same as it is no matter how much years pass by.
- It can be smart investment. There are few ways to invest in gold this includes holding a physical gold, buying shares from a gold mining company or through Gold exchange-traded funds. Just like in any other investments, gold’s value increases and decreases, supply and demand also drive its value. Between stocks and gold, gold is more accessible to an average person, it’s easier to comprehend and it’s less complicated. Moreover, for the past hundreds of years, gold’s value stays relatively constant and it could possibly go significantly higher. Investing comes with risks, but when it comes to investing in gold, I say the risks are minimal.
- Gold is globally accepted: Wherever you are in the world, gold is a widely-desired asset and is coveted by many thus it can be easily liquidated or sold wherever you are.
- Gold holds its value even during inflationary. Gold is still gold even there’s inflation – that’s why gold is considered as an excellent inflation hedge. An inflation hedge is an asset or an investment that increases its value while the purchasing power of a currency decreases. In case there’s been a financial turmoil, gold remains its value and used to hedge against inflation.
- Private asset – should you wish to stockpile gold, you may freely do so, without having to acquire any licenses. This means you can be anonymously wealthy.
- Gold can be a financial insurance – Gold can preserve your wealth as it can last a lifetime, in case of a financial crisis, gold can be an alternative to currency.
- Emergency money – Gold is a tangible asset, it can be within reach hence it’s accessible. During financial crisis or emergency, gold can be easily converted into cash. Gold tend to be uncorrelated to the stock market.
- Gold is unique: It has always had value due to its scarcity and aesthetic beauty. It’s difficult and almost impossible to counterfeit, it’s not manufactured or created by any machines or human – it’s unique, and just keeping it gives someone a mental security blanket.
- Gold has a lot of use. It can be used in many industries such as in medicine, technology, cuisine, engineering and in fashion.
Where is the cheapest place to buy gold?
First off, price of gold in almost all nations are nearly the same. There are just countries that sell gold for a higher price to take advantage of arbitrage selling, but in theory, the price of gold itself should be the same all over the world. Price usually varies when labor or craftsmanship and distribution costs take place, for example, if a gold has been worked into a jewelry and sold from a commercial store, then its price hikes up in order to be profitable.
Countries that sell the cheapest gold include the following:
Dubai, UAE: Dubai is very popular when it comes to gold jewelries. Gold Souk in Deira is the best place to visit in Dubai if you wish to shop for gold. It has hundreds of jewelry stores offering the biggest selection of gold jewelry. Sellers from these stores are up for haggling, so you are likely to score gold for a cheaper price if you’re good at haggling.
Thailand: Thailand has good amount of gold reserves. Gold is intrinsic to Thai culture, it was even called as the “Land of Gold” or “Golden Land” many years ago. You can find the best gold shops in Bangkok, where the price of gold is way cheaper compared to most Western countries.
Hongkong: Hongkong is known as the best gold trading market in the world. Gold shops are everywhere, even several banks in the country let you directly buy gold bars and coins over the counter. The best thing about buying gold in Hongkong is that it doesn’t charge sales tax on gold and you can even haggle for the price.
Is gold the best investment?
It’s nice to invest on gold, but as they say, never put all your eggs in one basket. Gold is a good investment, but not really the best one. There are many types of investments that gives better earnings, cash flow and dividends rather than investing in gold – therefore we can safely say gold is not really the best investment. An investment means putting your money into something that is expected to generate income – gold simply won’t serve this purpose, unless you can foresee major financial crisis coming wherein gold’s value go significantly higher. Investing in gold is almost similar to investing in stocks, the major difference is that the value of gold is driven by speculation and random luck.
Gold has played an important part in human culture for thousands of years. It has served many purposes in economics, technology, fashion, medicine, cuisine and other industry. Indeed, gold is a valuable chemical element that most people in the world go crazy for. The bottom line is, gold may or may not make you rich, but it certainly won’t make you poor.