Georgetown Trust Blog

5 Reasons Gold is the Ideal Investment

Posted by Georgetown Trust on Feb 17, 2016 11:08:01 AM

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One of the world's most valuable elements is also one of the world's oldest and most historic investments. If you guessed gold, you would be right. For thousands of years, gold has been a tangible representation of wealth, and one that goes far beyond the confines of a single form of currency.

Although the market now offers thousands of potential investment options, gold still tops the list for many savvy investors with an eye on security. Learn more about gold thanks to these five reasons that it makes one of the world's top investments.

1. Gold Supply is Inherently Limited

One of the top reasons to invest in gold is because its production is capped. There is only a set amount of gold available on the planet, and accessing it is becoming increasingly challenging and expensive.

As a result, supply is limited. If supply is limited and demand steady or increasing, it stands to reason that gold's value is in no danger of decreasing.

2. Gold Has an Incredibly Steady History of Value

When most investors today look at the long-term value of a form of currency or a stock, they may consider the last decade. For gold, however, value can be traced for hundreds and even thousands of years.

There is little to indicate that gold's worth and appeal will change, making it one of the more secure investment opportunities on the market.

3. Gold Can Withstand Inflation and Deflation

Arguably the most appealing aspect of gold as an investment is that it isn't tied to any single form of currency. If inflation hits the United States and the dollar becomes nearly worthless, gold can still be bought and sold in other currencies around the world.

In this way, gold can withstand inflation, deflation and even the collapse of a country or banking system, all while retaining value in other parts of the world.

4. Gold Provides Portfolios With Much-Needed Diversification

Diversification is a pivotal strategy for any portfolio, as it can mitigate risk and reduce vulnerability for investors. Although diversifying can take on many forms, one of the most popular and most secure is to invest in precious metals, such as gold, to balance out other investments like real estate, stocks or bonds.

5. It Allows You to Participate in Gold Loan Programs

Owning gold doesn't mean that you have to limit your investment options. In fact, since gold retains such inherent value, it can be used to free up your capital thanks to gold loan programs. 

Through Georgetown Trust, for instance, you can purchase gold at bulk prices and then have it stored in a secure location in Switzerland. If desired, you can borrow against the value of your stored gold in order to pursue other investments that appeal to you and require an immediate influx of cash. 

Then, you simply repay the loan according to set terms. If necessary, you can also sell off any remaining gold in order to pay back loans. Not only does this setup free you from the burdens of storing and protecting your gold assets, it allows you the freedom to explore new investment opportunities that crop up in a hurry, all while retaining gold at great prices.

It should be clear to even the casual investor that gold, and gold loan programs, are a smart way to diversify your portfolio and make your assets do more for your financial security. 

>> Combine the security of gold with the opportunity for investment

 

Topics: Gold Loan Program