But some argue is this right?
Even though gold has been wildly popular through the ages, is it wise to stack this glittering metal in your portfolio?
Dissuaders have been vehement in their argument that gold does not make sense. It does not provide cash flow, no dividends, and no earnings, they say.
Nonetheless, do not fall for this argument.
When the wealthy speculators and the governments the world over are rushing to stock up gold in a wild frenzy, they are certainly not chumps – they know what they are doing.
So, what makes gold bullion such a great investment?
Here are some compelling arguments.
Gold is stable
For the past 200 years gold has retained its purchasing power, but you cannot say the same of the US dollar. Just look what $10 could get you a few decades back and what it can now. An ounce of gold, on the other hand, purchases the same today as it did 100 years back.
Gold is independent
Gold is free from the influences of states, currencies, and politics. It retains its value.
Gold has remarkable liquidity
It is traded across the globe 24 hours a day, and this simply means gold is an international currency.
Now the question comes, what sort of gold should you buy?
You have four possibilities. Futures, exchange traded funds (ETFs), stocks, and bullion.
The prices of futures swing wildly, stocks can crash, and ETFs have enough volatility to make you lose your sleep.
Whether you purchase gold bullion coins, it does not matter.
Gold has been there as an investment for more than 5000 years. When there are no other alternatives, gold is there.
