Eight benefits of investing in gold
In recent decades, inflation has been very serious, and most countries are plagued by this problem. The value of the currency depreciates, the purchasing power of the currency gradually decreases, and the money becomes worthless. Benefit 1 An ideal weapon to fight inflation: In recent decades, inflation has been very serious, and most countries are plagued by this problem. The value of the currency depreciates, the purchasing power of the currency gradually decreases, and the money becomes worthless. In some extreme cases, the country's currency inflation is severe, and banknotes will become like waste paper. Gold itself is a precious commodity, and the price of gold will rise with inflation, that is, gold offsets the loss of inflation and ensures that investors' assets will not be eroded by inflation. Benefit 2 Excellent hedging function: When the world political situation and economy are unstable, especially when wars or economic crises occur, various common investment tools such as stocks, funds, real estate, etc. will be severely impacted. At this time, gold reflects very Good hedging properties. Even in the face of an economic crisis, the price of gold can remain unchanged or even rise steadily, maintaining the value of assets. With the continuous mining of gold deposits and the continuous increase in demand, gold has become more rare, enhancing its own risk-averse properties. Benefit 3 The market is difficult to be manipulated: In regional stock markets, man-made manipulation of the market abounds. However, the gold market is a global market. No individual or consortium has enough funds to control the global gold market. Therefore, the price of gold can always be maintained at a level that reflects the actual supply and demand relationship. The price of gold is globally unified, and no dealer's quotation dares to deviate from the actual range, because once the deviated price is quoted, a large number of investors around the world will carry out risk-free arbitrage. Since the gold market cannot be manipulated, investors have the greatest guarantee in terms of price fairness. Benefit 4 is not easy to collapse: the stock and real estate markets are at risk of collapse. Once they collapse, investors will lose their money. Gold is a non-renewable rare metal. The total amount that has been mined at present exceeds half of the earth’s reserves. The supply of gold will only become less and less in the future, causing the price of gold to continue to rise, even if there are fluctuations in the middle. The price is still optimistic along the way. In 1944, the price of gold was 35 US dollars per ounce. Today, the price of gold has exceeded 1,000 US dollars per ounce. During this period, the price trend of gold continues to rise. Investing in gold will not experience a market crash like investing in stocks and real estate. Benefits: The market does not fall on the 5th day and can be traded 24 hours a day: the gold market is opening. As the trading hours around the world have been practiced, gold has active quotations within 24 hours, so it can be traded at any time. After the stock market closes, gold investors can still capture various investment opportunities for trading operations, and can turn every minute of the world's changes into real profits. Benefit 6: People from all over the world in ancient times regarded gold as the best entanglement for travel. Today, gold is still the currency in the world. As long as you have real gold in your hands, banks, jewellers, and gold merchants all over the world can exchange gold for local currency. Gold can flow around the world unimpeded, and its currency status is stronger than that of the US dollar. In addition, gold is also an asset recognized all over the world, and people in all countries have a consensus on the precious value of gold. Benefit 7: There is no depreciation problem: almost all luxury goods will encounter depreciation problems, such as famous bags, famous watches, famous cars and so on. When a brand new one is bought back, it can no longer be sold at the original price, and after a long period of time, the value is even more depreciated. It may not even be worth half the original price. But gold does not have the problem of depreciation, its brilliance and value are permanent. When the gold ornaments become eclipsed after being worn for a long time, the value of gold itself has not diminished. There is no second-hand gold with discounted prices on the market. As long as the gold is cleaned, it can restore its original luster and can be smelted at any time to make new gold ornaments. Or gold bars. Benefit 8 The value is stable and lasting: Luxury goods cannot be kept in value, can houses and land be kept in value forever? Not to mention the 70-year housing use rights implemented in Mainland China. After a long period of time, the maintenance and upkeep of the houses will be a very large expense. Now it is difficult to see the older houses, and all of them are no longer available. Existed. The land also cannot be permanently preserved in value. In the event of natural and man-made disasters, the value of the land will be greatly reduced. Moreover, the value of the land is also affected by the economic development of the locality, and depends on the government's planning, the country's governance and the improvement of the economic system. Gold will not have such a problem. At any time, anywhere, its value will not be shaken by sudden changes in the region. Previous: Comparison of gold and other investment products Next: History of gold
