Benefits of investing in gold: why still choose it in 2024

What comes to mind when we think about investments? Real estate, stocks and bonds, commodities, and cryptocurrency probably ring a few bells. Moreover, there's a type of investment that has been around for decades and is a symbol of wealth, security, and value. We are talking about the benefits of gold. 

Why purchase gold? Historic value

Throughout history, to purchase gold was always seen as a plus. Historically, gold has been considered to be a guarantee of value and safety because it was supposed to be accepted anywhere. Having it would help open doors in case of war, persecution, or exile. 

Another significant advantage you get when you purchase gold (this can be a gold bullion, a bar, a coin, or even gold-based funds) is that you're accessing a metal with valuable inherent features. It's durable and highly malleable and it preserves its qualities intact over time, independently from external factors. Most importantly, gold is scarce, i.e., there is a limited amount available in the world, which makes it one of a kind. 

In other words, the benefits of investing in gold are at least three: you will have a metal that will be preserved intact, that can be changed according to your needs, and, finally, it will eventually run out, which means that your piece will become unique. This is why, among other things, having metals in a gold vault is considered a protection against inflation in the long term. 

Why purchase gold? Gold bullion against currency

While currency gives us liquidity, it fails as a long-term investment. Currency is volatile, especially in distressed economies and some jurisdictions restrict its purchase. Some governments apply exchange controls, stipulating the amount of foreign currency citizens can buy monthly. To purchase gold, on the other hand, is less regulated. 

Why purchase gold? Buy gold bullion against cryptocurrency

We can learn much about the benefits of investing in gold by comparing this metal to other popular investment targets. Everyone is talking about cryptocurrencies, however, they have their drawbacks. 

On one hand, they are accessible only through software. This requires passwords and cyber security controls. Moreover, the crypto market is known for its volatility, a characteristic reserved only for aggressive investment profiles. Gold, on the other hand, is more stable.

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Benefits of investing in gold: purchase gold as a protection against crises 

Usually, gold is seen as a refugee for investors and a safe bet when other markets are falling. For instance, gold is considered to be the protection par excellence against inflation. When inflation strikes, investors look to purchase gold or to buy gold bullion units. 

Furthermore, gold is seen as a hedge against recessions. When stocks fall dramatically, there are massive shifts to gold investments as players look for stability and protection rather than profit. 

Should I purchase gold or silver? 

Silver has its followers as another solid metal that shares many features with gold. Buying silver is cheaper and easier, and it can offer greater profitability. Its value presents more variations and it usually climbs higher than gold when prices peak. 

This is mostly because silver has more industrial uses. Nonetheless, this also makes it vulnerable to abrupt falls as it depends on specific markets. 

Purchase gold: Profit or preservation?

Some experts recommend gold as a protection against inflation or a way to maintain a portfolio’s value. However, obtaining profit is a different story. In the 80s oil increased its value from 4 dollars to 12, triggering a huge crisis and an annual 15% inflation. The high interest rates plus the tight economy caused gold to descend from 800 dollars to 250 dollars an ounce. 

If someone bought an apartment in the 80s for 800$ dollars a square meter, 40 years later they would expect it to be way more appreciated. Actually, 0,4 percent investment rates are a better deal. 

Disclaimer: this article is based on editorial research and reflects an opinion. The article is not based on market or financial research and should not be taken as financial or investment advice. Before you purchase gold bullion pieces or any other kind of gold or investment, conduct proper research and consult a certified professional.

A conclusion on the benefits of gold 

After this explanation, we can look at the benefits of investing in gold from a different perspective. It’s vital to understand when gold is convenient and when it isn’t. We must draw our investment plan on the basis that no investment is perfect, and each approach has a reason to be. 

While buying a gold bullion or coin is a guarantee of security, it may not bring due appreciation. Nobody can deny the benefits of gold as a limited resource and a durable and malleable metal. In a time of crisis, this can be the safest bet.

On the other hand, one must not look for significant profits out of this investment as history has shown us. 

It is Mundo’s opinion that a balanced portfolio is the answer to all investors’ prayers as it can address individual needs, assigning the proper percentage to each asset depending on the investing profile. 

At Mundo, we are happy to connect you with the right providers and experts when it comes to nomad capitalist services. Take advantage of the benefits of investing in gold and protect your assets with a proper financial strategy. 

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