Investing in gold can help diversify one’s investment portfolio. Gold protects investors from some of the impact in the event of a market collapse. Gold’s value and demand is increasing as available resources are becoming more limited.
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Gold may be used as a hedge against inflation. Gold prices tend to move in the opposite direction of stocks and bonds. Gold prices should increase when inflation increases. Therefore, gold may be a sound investment as a protection against economic instability.
Gold withstands weakening currencies. Gold can be used as a hedge against fiat currencies — paper money declared by a government to be legal tender. When the US dollar weakens, the price of gold often increases. The more paper money that gets printed, the less valuable the currency becomes. But there is a limited amount of gold, and more cannot simply be “printed.”
Gold can be used anywhere! Gold is the global standard and has been widely used for different currencies throughout the world. It is considered an efficient indirect monetary exchange, and the demand for gold is increasing especially quickly in countries such as China and India.