Resources & Articles

Advantages of Investing in Gold Bullions (Bars & Coins)

A bullion is a precious metal in the form of a bar ingot or coin, with a purity of at least 99.95% or 99.99%. Bullions are often kept as reserve assets by governments and central banks (Gold, Silver, Platinum, and Palladium).

Here are some of the main reasons to invest in precious metals coins and bars:

Portfolio diversity

Gold is traditionally known for its inverse relation to stocks. Historically, when stocks went down, gold went up. Gold is an essential part of any balanced portfolio in the long run.

Private form of wealth

Physical gold as a private form of wealth remains outside the digital world and privacy remains paramount. The gold is easily liquidated and traded worldwide.

Store of wealth

Gold has maintained an intrinsic value for thousands of years, with limited quantities of 200,000 Ton worldwide. Increased use in the electronic era and in investment channels, make it a perfect store of wealth in the future as well.

Safe haven

Unlike FIAT currencies, stocks and real estate, whose value can be affected by geopolitical tension, monetary decisions of central banks, assets / properties nationalization by governments, gold is a tradable asset (commodity), that is stable, protected and shielded in times of crisis.

Giftability
Gold bullions can also make great gifts, unlike any other present, it will maintain its value forever.

Hedge Against Inflation

Investing in gold is not only about owning a valuable asset; it also serves as a hedge against inflation. During times of economic uncertainty and inflation, the value of gold often increases as it maintains purchasing power better than fiat currencies. This makes gold a strategic addition to investment portfolios, providing financial stability and protection against the eroding effects of inflation.

Just adding this on June- 21-2024 from our “tip of the week”

EXAMINING GOLD AS AN INFLATION HEDGE IN 2024 :
A SUMMARY OF MIKE MAHARREYS INSIGHTS

Its common to speak about gold as a hedge against inflation, but in this summary of the journalist Mike Maharrey, he points to actual todays indicators.
Since mid-2021, we have lived through the worst price inflation since the 1970s, with the CPI (Consumer Price Index) peaking in June 2022 at 9.1 percent. During this period, many people sold gold, evidenced by its rangebound price through most of 2023. Was this a good move?
Examining the trend, gold sellers dominated when news indicated ongoing high inflation, often selling during large CPI increases or strong economic reports, particularly positive job reports. Conversely, gold buyers increased their purchases when inflation news was positive or indicated an economic slowdown.
The mainstream view suggests that persistent price inflation prompts the Federal Reserve to raise interest rates or keep them higher for longer. Higher interest rates create headwinds for gold since it is a non-yielding asset, leading investors to prefer yielding assets like bonds.
However, Maharrey finds it curious that investors consistently sold a traditional inflation hedge during the worst inflationary period in 50 years. Some of the gold price swings in recent months appear to be driven by traders anticipating
others; actions, rather than long-term trends or economic fundamentals. This “monkey see, monkey do” phenomenon was programmed into trading algorithms, creating short-term gains but neglecting long-term perspectives. Maharrey also questions golds role as an inflation hedge, noting that some investors consider it a “useless metal.” However, looking at the performance since June 2021, gold has
increased by about 29 percent, compared to a 12.3 percent rise in CPI, indicating a solid
inflation hedge.

For the full detailed Mike Maharreys article press ARTICLE