Instead of plundering ships on the high seas you invest in gold. Arrr! It sounds exciting, right? Let’s take a look at why gold is still a popular commodity today.
Gold has been around since ancient times. Robert Kiyosaki is like a wise grandparent that always gives the best advice. It has been trusted through wars and recessions as well as market crashes. It’s like comfort food for your finances.
You might be wondering why someone would invest in something which is only used to make jewelry or sit in a vault. Gold doesn’t rust, tarnish or fade. Gold is the ultimate “set and forget” investment. Gold is the only investment that can be left alone. Stocks and real estate markets are susceptible to sudden crashes, but not gold. Gold just sits there and keeps its value.
Consider inflation for a moment. Inflation is when prices rise and money doesn’t buy as much. This sneaky thief is thwarted by gold. Gold is often worth more than cash, which can lose value due to inflation.
Let’s take a minute to talk about diversification. Imagine having all your eggs in a single basket, and then falling over a stone. It’s the same with your investments. Diversifying your investments is a way to spread out your money over a variety of assets in order to reduce the risk. Gold is a great addition to any portfolio, as it’s uncorrelated with bonds or stocks.
Ever heard someone say “going for gold”? It’s not without reason that gold is synonymous with big wins. Gold’s appeal is not just historical, but also psychological. Gold gives people peace-of-mind, like having an ace in their sleeve when times are tough.
Alright, storytime! After losing her shirt (not literally) in the 2008 stock market crash, my friend Sarah invested in gold. She purchased some coins and hid them like a squirrel storing nuts for the winter. In ten years, her little treasure trove has doubled in price while other investments are still catching up.
Wait! You can get this gold cat in more than one way! If buying physical coins or bars sounds old-fashioned to you, then there are other options. ETFs are exchange-traded funds. These clever financial instruments allow you to invest in gold, without having to buy a chest of treasures.
Don’t forget about mining stocks, either. They’re a great option if you feel adventurous. Investing in mining companies can bring higher returns, but it also comes with greater risks.
Have you ever wondered why central banks store so much gold in their vaults? They know exactly what they are doing! They stabilize their currencies, and economies in turbulent times by holding large reserves. This is a trick that we can all learn!
But, and this is where it gets spicy, not everyone believes that investing in gold will be a foolproof decision (gasp!) Critics claim that gold doesn’t produce income like stocks, or rents from property. It just looks pretty.
Beauty has its own perks! Cleopatra was a queen of Egypt who ruled Egypt with a dazzling array of gold bling!
What’s holding you back? You should do your research before you dip your toe into the glittering waters. Consult with experts if you need to and research different investment options. Pirates love treasure hunting, but sometimes X does not mark the spot.
Gold is a great investment, whether you want to protect your portfolio from economic storms or just add some sparkle.
The modern treasure hunt is waiting for you!