Why Buy Gold?
There are 3 principles that make gold an attractive investment; Price, Diversification and Value.
Price: The cost of extracting gold coupled with the fact that it is a diminishing resource means that the cost of producing it will inevitably increase meaning that the price of gold will over time only increase making it an extremely attractive asset.
Diversification: Simply put, a diverse portfolio gives you greater security across markets allowing you to avoid a situation where you’ve got all of your eggs in one basket. Diversification is the only way to secure wealth and gold is a good base ingredient for that mix.
Value: The time to find value in the commodity such as gold is in a down market. Buying into a solid commodity like gold in a down cycle will lead to positive growth on the upswing.
Of course, when buying gold for use in jewellery the value becomes priceless in terms of its value related to the sentiment behind the purchase.