Buy Gold for your Portfolio
Gold has withstood the test of time as a safe-haven investment. In unstable and unsafe economic periods, investors throughout history have turned to gold to hedge their losses and preserve their wealth. Today's investors are attracted to gold for the same reasons - the inherent protection it provides as a harbor for economic storms, and the powerful growth potential it possesses as part of a portfolio.
Finding your safe haven in gold
Throughout modern investment history, the economy has seen much volatility. The current economic climate is no exception. During these times, savvy investors seek to protect their wealth, capital and other assets by gravitating toward less risky investments. Gold has continually shined as a safe asset, because there is no default risk if a financial instrument issuer refuses pay. Similarly, gold maintains wealth even when other investment options suffer.
Enlarge your portfolio with gold
Typically, investors' portfolios consist of a combination of wealth and assets - stocks and bonds. Yet stocks and bonds offer little protection against negative market fluctuations. To protect against these inevitable fluctuations, financial experts recommend expanding your portfolio with precious metals. While some investments may decrease in value, gold often maintains or increases in value, a necessity for investors striving to maintain their wealth over time.
Gold is a hedge against inflation
Gold is often purchased by investors who want to avoid inflationary losses. The securities market consists of variable terms; however, gold's purchasing power has remained strong.
Hedging against the dollar with gold investing
To hedge against fluctuations in the U.S. dollar, financial experts consistently recommend investing in gold. When the dollar is weak, the value of gold typically increases.
Risk-management with gold
The risk involved with gold investment differs greatly from other investment commodities. Gold is a historically stable precious metal. Including gold in a financial portfolio reduces an investor's risk level and expands returns, especially in a weakened economy.
Gold's supply and demand ratio
Supply and demand causes gold prices, like all commodities, to fluctuate. In spite of record gold prices and high demand, gold's production is currently relatively inelastic. With scarce supply in relation to demand, the growth of gold investing will sustain. The outlook on investing in gold is better today than ever before.
Choose gold over stocks and bonds
Stocks and gold bullion are classified as completely different assets, but their performance in the market is often compared. With stocks, investors profit through a return on value, while gold retains a store value. Stocks and bonds thrive in stable economic and political times, while gold performs well even in volatile markets. With economic downtrend, debt, and political tensions facing the United States and countries around the world, gold is in position to outperform stocks and bonds of all kinds. Gold's great power is in its ability to hedge losses and return on investment.
Think investing in gold is right for you?
Open an account with Highland Asset Management Metals Division to start investing today.
