Is Investing In Gold Still a Good Idea in 2021?

Investing in Gold

Investing in gold, regardless of the form, remains among the top choices of investment among people for decades. But what we consider as an ever-green investment option has witnessed some dramatic changes over the years that have certainly affected its value in the market and the way it is getting perceived by the investors. Those who are interested in gold, invest in it via ETFs, or exchange-traded funds, investing in gold miners’ stocks or physically buy gold in Canada. Each of these options is equally popular among investors that have helped them create an impressive investment portfolio.

However, like any other investment option,  gold also has its fair share of critics who advise against it. There is certainly a debate over whether it still pays to invest in gold or not. On one hand, where some argue that it is a material to be used in jewelry and not a lucrative investment option, others believe that gold is an asset that proves to be financially helpful for people in different ways due to its intrinsic qualities.

A Brief History of Gold

To gain a better understanding of gold and its investment options. It is important to look at its origins and history. As we are all aware that in ancient times in 2000 B.C, gold was first used as a material for jewelry and it continues to date but soon people realized its monetary value and started using it as a currency in 560 B.C. Gradually, gold was accepted and recognized as a highly lucrative investment option in the different corners of the world.

Gold in the Modern Economy

Gold

Fast forward to today, gold is still a sign of the wealth of people everywhere and carries unparalleled importance in society. It is certainly an important part of the world economy and it can easily be validated by examining the balance sheets of financial organizations or central banks. In today’s time, these organizations carried almost one-fifth of the gold and they are constantly making efforts to collect more.

Gold Preserve Wealth

One of the main reasons why gold is preferred by the top financial organizations in the world is because for generations it has successfully preserved and stored wealth. It may not have provided investors with much liquidity with its previous investment options but the same has been successfully solved with the current different forms of gold investments.

Apart from preserving wealth, it significantly multiplies in its monetary value over the years. If you invested $100, 10 or 20 years ago in gold, your amount would have multiplied significantly in 2021, but if you kept away $100 as savings, it would still be the same.

Gold as a Safe Haven

Every other investment option is easily affected by even the smallest highs and lows in the market but the gold value is not that easily collapsed. The current economy of the world may not be at its best considering the recent pandemic, but when you look at the prices of gold, you will find that investors who were smart enough to put their money in gold are benefitting even in today’s scenario.

Gold as a Diversifying Investment

There is no surprise that gold is considered a diversifying investment in today’s time. It has historically served as an investment option for people and even today, it is helping investors diversify their portfolios. With this diversification, people who are worried about the declining US dollar, inflation, and protecting their wealth can put a  stop to their worries.

Various Forms of Gold Investment Options

In today’s time, investors are presented with various forms of gold investment options that they can use to enrich their portfolios. Depending in  their needs and flexibility, they can choose any option from below-mentioned ones:

  • Gold Mutual Funds
  • Gold Bullion
  • Gold Jewelry
  • Gold Futures
  • Gold Coins
  • Gold Companies
  • Gold ETFs

The Benefits of Investing in Gold

Investing in gold can be beneficial to both long term and short term goals. For those looking for investment yield, investing in gold can be a good way to increase wealth over time. The benefit of investing in gold is that prices do not fluctuate as much as other investments, and this allows investors to profit when the market fluctuates and prices are unpredictable. This is unlike other investments, such as stocks, bonds, or mutual funds, where losses and gains can vary depending on the government policies and economic conditions of the country. The benefit of investing in gold is also that gold itself does not lose value, so holding onto gold is a good investment regardless of the economy.

Investing in gold can also provide tax advantages as well. One of the benefits of investing in gold investments is that there are no annual tax fees associated with them. The best benefit of investing in gold is that there is very little risk associated with them, as even if the market takes a dip, gold investments will generally hold their value. Additionally, gold investments are not subject to inflation and are not affected by governmental policies around the world.

Investing in gold is a sound choice for anyone who wishes to diversify their financial assets. Gold is one of the safest and most secure investment options available and also offers the potential for large profits. The benefit of investing in gold investments can give you a valuable return on your investment, while also minimizing the potential for financial loss.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.