This site may contain affiliate links from which we may earn commission. This helps us keep this site free and with running costs. Thank you for your support and understanding.
Among the variety of investable assets available to us, Gold is a popular investment with Investors, and for many reasons.
Gold has certain, benefits and disadvantages but the benefits far outweigh the downsides, therefore making a good investment in my opinion, hence why I hold some:-)
Let’s look at some facts on Gold, from an Investment angle…
Gold can be invested as a hedge against inflation as it typically keeps up with inflation, compared to other investments.
Gold has also performed well against past economic downfalls, such as stock market crashes so can be potentially viewed as a safe-haven investment in an Investor’s portfolio.
In the UK, Gold purchases are VAT Free and specifically gold coins are exempt from capital gains tax, making gold a tax-efficient investment.
As part of a diversification strategy, investment experts recommend holding 5-10% of your portfolio in Gold.
For decades, in society, gold has always been a precious and cherishable item to have, particularly in the form of gold jewellery and will likely be regarded like this for years to come.
Gold is also maintained and increased in value as it is regarded as one of the most valuable metals in the precious metals range and one that has limited amounts of availability, due to its finite amounts in the world.
The gold price has consistently risen for the past 40 years with the exception of some dips in recent years.
Investing in actual physical gold such as coins or bullion, does not pay any type of cash flow or dividends for holding as it is classed as a store of value.
However, there are other gold-related investments such as ETFs and Companies on the stock market which you can invest in, for potential earn in dividends, depending on the stock you invest in.
When it comes to storing gold, you may be at risk of being targeted by thieves as Gold is a popular item to steal and sell to Criminals.
Another issue is the storing of gold, as it must be securely stored for the reasons as mentioned regarding Gold being a target for Criminals to steal.
Gold is a very liquid asset as you can trade it relatively easily.
I think it’s definitely a good investment for many reasons as we went through and personally have invested and stored a small amount for the past few decades.
I feel holding some gold gives me a sense of a “safe haven” and rainy-day security knowing if any day, I don’t have cash in the bank or whatever financial difficulty, I’ll have the option of trading that gold into cash through a retailer.
Having said all that, it’s still an “investment” so we should always follow the typical investment advice before making any investment, including Gold.