Are you someone looking to increase the diversity in your investment portfolio? Perhaps you simply are not sure where to go from there, though. Just the idea in itself is a good start, but now is the time to finally put action behind those words!
Truly making the effort to do so is hard. Even seasoned investors can sometimes be intimidated by the work that it takes, and there are moments that we all have in which we wonder if the stress is worth it. Building up wealth over time and generating the funds that we will need to live out a comfortable and happy retirement, though, are always worthwhile (at least in my opinion).
With all of that being said, I would like to offer you five fun facts about this topic that you may not have already known! Make sure that you stick around to get the full scoop!
One: While Most Commodities Have a Volatile Market, Gold Does Not!
Starting off strong, let us discuss the market surrounding this precious metal. If you did not know, we classify it as a commodity when speaking about it in terms of investing. What is a commodity then, you may be asking?
A commodity is simply a type of asset that is a raw material. Manufacturers take it and refine it into other products later down the line! A common example of it comes in the form of agriculture – many crops fall under this umbrella. I think that sugarcane, tobacco, and coffee beans are some of the most common ones.
Because of their very nature, most of the time the markets surrounding these products are quite volatile. All that means is that they are not going to have stable prices for buying or selling. Obviously, that makes them rather risky from the point of view of an investor.
Gold is fairly unique in that regard. It does not suffer from that same problem. Instead, even if the value rises and falls within a single day, over long stretches of time it stays regulated. That is why it is not thought of as risky in comparison to others in this category.
Two: Gold Can be a Hedge Against Inflation in a Time of Crisis
Do you know what many investors flock to during times of crisis? The answer is gold! Now, let us dig into why this is the case.
Thankfully (and unfortunately), we have a recent event to look to for an excellent example of this. During the covid 19 pandemic, the price of this commodity soared on the market. Everyone seemed to want to buy it in bulk, especially as the rates of inflation for paper currency started to skyrocket. To say that the United States, as well as the entire world, were in an economical crisis is an understatement.
This scares people, and for good reason. When the currency in a nation is losing buying power, that puts all of its citizens at risk. In particular, it makes us start to worry about the money that we have set aside for retirement.
Can you image trying to comfortably retire without your own supplemental income to add onto social security payments? Unfortunately, it tends not to work out very well. That is why some folks opt to read sites like this, https://goldinvestingcompanies.org, to get some sense of ways they can protect themselves and their financial future.
Three: It is a Highly Unique Metal
Changing topics just a bit, let us look at gold on a scientific level. The symbol for it on the periodic table is “Au.” It is the only metal that is yellow in color. Perhaps that is what drew our attention when we first discovered it!
One of the largest appeals is that it does not easily corrode. This is fairly unusual for metals. All of the precious ones do share that attribute, but the others are grayer in their coloration and sheen. Therefore, gold stands out more.
A final note here is that it has a low boiling or melting point and can be molded into shapes with relative ease. The jewelry that we see is evidence enough of this, for certain. All of these properties (amongst more) make it rare and special.
Four: It Has Performed Well for Decades
This tends to take people by surprise. Since we do not hear about it all the time on the news, unlike the New York Stock Exchange and the stock market as a whole, it can slip under the radar easily. However, it is an asset that has retained its value over the years.
Perhaps that is because of some of those reasons that I listed above. However, there is also the simple fact that it has been seen as highly desirable for centuries. Hard to argue against that logic!
Five: You Can Invest in it in Many Different Ways
Would you prefer to stick with what you know? Maybe you just want to stick with the stock exchange. The good news is that you can still tap into this market while staying in your comfort zone!
There are a few ways to do that, but all involve purchasing stocks in companies or organizations that deal in precious metals in one form or another. That could be by mining it or smelting it into jewelry or bullion – even coin minting, in some cases, can be a part of this.
To some extent, we could even classify the versatility here as difficult to wrap our minds around. Since we can put gold into an individual retirement arrangement, house it with a custodian, keep the bullion in our own homes, or even refine our coin collections and still be investing, it is hard to narrow it down.
My advice? Mull over the decision carefully. Do not be rash and rush into anything. Instead, think about the pros and cons of each method to decide what might work for your needs.