Here are some reasons to invest in gold. While there are many companies hyping gold on TV, the Internet, and seemingly everywhere else, there are good reasons to consider in gold. Investors need to look past the hype and decide for themselves whether or not gold is a good investment for their needs. Here are some things that a gold investor might want to consider before investing in gold.
More Than Jewelry
While jewelry is an important part of the demand for gold (and may grow larger due to the cultural importance of gold in economically growing countries such as China and India), gold has many other uses primarily due to its ability to resist corrosion and to efficiently conduct electricity.
Gold Can Be Physically Held
Unlike stock and bond investments, gold is a tangible asset that does not require the investor to trust an investment company and the government oversight authorities. Gold can be held in an investor’s hands and buried in the yard if they so choose. For many investors this is an important reason to invest in gold, though the gold should be stored securely such as in a safe or safe deposit box.
Gold Is Not Limitless
The supply of gold is not limitless. As the gold supply that is available becomes more scarce, the cost of mining the gold from less productive areas will increase the costs of production. Environmental regulations may also increase the costs of mining gold.
Gold is Desirable
Even when the reason is nothing more than simply to have it, it seems that everyone is interested in owning gold. Whether or not all the reasons that people want to possess gold are reasonable, the desire for gold can help to bolster the price of gold.
Gold is Easily Purchased, Stored, Moved, and Sold
Gold is very easy to deal with as its price is well known and the quality of gold from reliable sources is well trusted. A buyer can walk into a coin shop, buy a gold coin, put it their pocket, walk down the street and sell it at a pawn shop. Though the buyer will lose money on such a transaction due to fees, it is really that easy to buy and sell gold.