Investing in gold provides great security in turbulent financial environments, especially considering its track record of maintaining long-term value. Often gold is not directly impacted by a countries fluctuating currency and credit risks. For these reasons and more gold is a secure investment that’s been proven reliable for years.
Over the past two hundred years gold has kept pace with inflation. In the last few years an investment in gold has greatly exceeded a similar investment in the S & P index 500 stocks. In fact since 1999, gold has increased in value by more than 200%, while a vast amount of stocks have actually lost value.
An interesting thing to note about gold investing is its ability to move independent of key economic data. Increasing your holding in gold can greatly offset a portfolios overall risk and protect you from stock price fluctuations. Diversification in gold is a great hedge against relying only on traditional financial assets like mutual funds, bonds and stocks.
You can invest in gold in a variety of ways. There’s gold mining equities which are often put together as gold-oriented mutual funds. Gold stocks, futures and mutual funds are another way to increase your holdings. In addition you can also buy physical gold bullion, gold coins, or bars of gold. Overall buying gold is a significantly less volatile way of investing during times of economic uncertainty and can be a great way to add much needed security to your portfolio.