Why is gold considered a ‘safe haven’ investment?


When speaking about investments, a ‘safe haven’ is an investment that is expected to retain all of its value and possibly become even more valuable, even when the market experiences turbulence. They’re highly sought after by investors to help limit their exposure to large losses, should the market turn down. However, it is important to note than investments that are considered ‘safe havens’ usually change as the market conditions do.

For many years gold has played a large role in economies across the world and is classed as a ‘safe haven’ for many. While it is no longer necessarily a primary form of currency as it once was in years gone by, many believe that it is still a valuable addition to any investment portfolio and can offer stability during tough financial times. It remains a popular investment in today’s world for many reasons, including:

– Diversification: Gold bullion is a great way to diversify your investments and add security to your portfolio. It is seen by many to lower the risk of investments as it moves inversely between currency values and the stock market, being more stable as an investment than cash.

– Liquidity: Gold can easily be converted into monetary value anywhere in the world, meaning that it holds high liquidity that is unparalleled.

– Use as input in products: Gold can be used in products such as electronics and jewellery, resulting in a reliable and consistent level of demand for the precious metal and further stabilising its price. In addition, an increase in demand can mean an even higher price for gold when you come to sell.

– Universally desired: Gold is used as a universal commodity. While many countries sell their treasuries, currency futures and other securities worldwide they are subject to political uncertainties, unlike gold.

– Holds value: Many economists argue that the price of gold is not indicative of its value because it tends to maintain its value over time. This being said, if the price decreases, the actual value of the gold itself doesn’t change dramatically mostly due to the fact that there is a fixed quantity of gold as a result of its use as a commodity.

Gold can be quite the profitable investment if done correctly, meaning that if you’re concerned about your country’s currency, gold may be a great addition to your portfolio. If you would like to learn more about buying gold or wish to start, contact us today or purchase online. We give you the ability to buy silver coins, gold coins, bars and many other forms of bullion online safely and securely.


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