Unlike equities and stocks, which remain relatively fragile against the complex mixture of global and political factors, gold is a physical asset that holds its own in the face of extreme economic conditions. It really is a hedge against uncertainty. When the dollar fails to pull its weight against other fiat currencies, investors all across the world run to safe haven assets as a last resort – and the first of these is gold bullion.
Gold has managed to stand the test of time. Despite the advancements in technology and erratic government policies all over the globe, the value of gold has been on an upward trajectory. The ever-increasing market value of gold has allowed it to diversify and strengthen one’s economic portfolio.
There are a few risks associated with the bullion such as large premium fees and difficulty in authenticating gold coins. It is a good idea to visit an experienced gold consultant to become well-versed about all things gold.
The gold rate in Chennai and across the world are on an upward trajectory due to recent geopolitical turmoil such as the US-China trade relations and the dollar’s weakened position. As of December 29, the gold rate today for 24k and 22k variants are faring for Rs. 3,228.88 and Rs. 3,019.00 per gram respectively, increasing by Rs. 53 in the last 10 days.
As the US Federal Reserve continues to tighten monetary policy, the stock market takes a turn for the worse. The outlook for gold could not have looked better than it is today, but if you still need more reasons to invest in gold, here are three reasons why it's time you should.
1. Gold is a Durable Physical Asset
There are no mathematical equations or complex graphs that serve as proof of your ownership of the bullion. It is something you can hold in your hands. You can’t say the same about other assets such as cryptocurrency or the securities that are traded on the stock market. Plus it’s not easy to destroy gold, which can hold its own against elemental damage from fire and water and retain its brilliant shine for thousands of years.
2. Gold Keeps Your Wealth Private
Gold allows you to exchange wealth in a private and confidential setting. It is one of the few investments that remain anonymous, and if you choose to do so, no one outside of your chosen parties will ever know of your investment. You might still have to pay income taxes though, which is why it is recommended to take advice from experienced consultants.
3. You Can’t Hack Gold
A lot of wealth today is stored on the cloud, locked away as a series of 1’s and 0’s in high-end secure servers around the world. But even the world’s most secure databases are vulnerable to software exploits such as man in the middle attacks, Trojan hacks, and ransomware attacks. Hackers and identity thieves can’t ‘hack’ your gold or delete it from existence. In the highly volatile digital age, it always pays to store some of your wealth in physical form.