If you buy physical bullion, you don’t need to worry about the uncertainties of stock markets or the volatility of equity prices. Precious metals have always been considered a safe-haven for investors to profit against inflation and currency fluctuations.
Put simply, investing in gold is like buying insurance against any uncertainty and market volatility. You can never know what the future holds, so it’s wiser to protect yourself with an asset that will always stand the test of time.Get Started
Unlike other currencies, assets, and financial instruments, gold and silver have a history of holding their value, no matter the external circumstances. Also, buying physical bullion protects you from uncertain times and devaluation.
When the US dollar devalues, gold and silver move in the opposite direction. For instance, in 2008, Gold hit the $1000-an-ounce milestone in early 2008 and nearly doubled in value from 2008 and 2012, hitting the $1900 mark! If you fear the dollar will fall, Bullion is an excellent shield against devaluation.
Gold and silver bullion serve as barriers against deflation. Even when the prices of general goods and services decrease sharply, bullion manages to hold its actual value; hence is the safest asset to invest in.
Bullion is considered to be a popular hedging instrument against inflation. It is inversely related to the USD. So, if the price of USD falls due to inflation, the price of every ounce of gold in dollars will rise as a result.
Bullions are often remarked as a "Crisis Commodity" since people flock to gold and silver during times of world tension. They are an excellent investment in tough geopolitical situations. Historically, bullion prices rise when governments lose the people’s trust.
While paper currencies have grown in popularity, the demand for bullion remains strong. This is especially true for developing world economies such as India, where gold is the most bought asset. In China, it’s considered to be the primary form of traditional saving, thus always in high demand.
Diversification is the process of choosing investments not closely correlated with one another. As an investor, you can reduce the overall risk and volatility by adding bullion alongside your portfolio of stocks and bonds as bullion negatively correlates to stocks and other financial instruments.
Regardless of whether you’re a beginner trader or a well-rounded investor, Bullion investments are bound to fare better than reliance on paper money in the long run. During tough economic times, they hold their value even if the price of paper money falls drastically.