Should you invest in Gold?
Since the stock markets began, gold has gained a reputation to have a negative correlation to stocks and a positive correlation when compared to inflation. In spite of that, Gold's history as a financial asset and store of value began long before this, gold is one of the earliest traded assets existing long before other markets like stocks and bonds. Also, gold offers lots of opportunities for gold investors and traders, but it's not without its rapid deterioration. Investing In Gold based on your short term prediction for stocks is transparent speculation, though investing a small amount in gold stocks or funds can be a valuable inflation hedge and portfolio diversifier. In this article i'll talk about if you should be investing in gold in 2021.
SHOULD YOU INVEST IN GOLD?
Here are some factors to put in mind while considering gold as an investment. Let's get started.
Gold has been valued throughout human civilization. gold coins were minted and used as currency as far back as 550 BC, but gold was known as a sign of wealth long before it's used as a currency. treasures containing gold had been discovered from as early as 4000 BC, so the precious metal has been notorious for its relevance to power and wealth for many millennia. Nevertheless, it was not until the late 1800s when gold gained its value in contemporary finance. The majority of nations adopted the gold standard, which involves fixing the value of their currency to the price of gold. Since the gold standard has been dropped, and readopted in many countries until it was finally replaced by freely floating fiat currencies in 1971. global demand for jewelry was down 29% in the third quarter of 2020 year over year. According to the World gold Council, the drop is largely predicated to the economic devastation of the pandemic partnered with the skyrocketing price of the precious metal, but gold has been highly demanded after for 1000s of years across cultures. The ancient Egyptians considered that the flesh of the gods the Incas called it the sword of the sun. And today, demand for gold jewelry is especially strong in emerging markets, particularly China, where it's oftenly, gifted for special occasions and the Chinese Lunar New Year is also valued in India as well, where the wedding season and the festival of Diwali commonly trigger a buying frenzy. These markets estimated for the largest pandemic related decline. But still, Gold's cultural and historic significance throughout civilization isn't going to be reversed by the Coronavirus. You can count on gold holding its value, even if a global recession tanks jewelry demand in the short term, gold has been trusted by many investors for its wealth preservation qualities. Consider the comparison between owning 50 British pounds worth of gold in 1980 and owning a 50 British pound note, gold has since gone up in value, so the value of the gold far exceeds the original 50 British Pound investment. Still in all, the 50 British pound note has not increased in value and due to inflation cannot buy as much as it could have in 1980
It's industrial usage is limited and the supply remains scarce. Gold has various uses in fields like electronics, medicine, dentistry, and many more, but only about 10% of worldwide gold demand is driven by industrial production. As a result, gold is relatively insulated from a manufacturing recession, even though it's not protected from a consumer recession for spending plummets. On the other hand, more than half of silver mined worldwide is used for industry, which is why the white metal is more likely to move up and down with the stock market. Now coming to the scarce point. If all the gold mined in human history were melded together, it would fit into a cube of just 21 meters or 69 feet on each side. That's roughly enough to fill 3.7 Olympic sized swimming pools. adverse to popular belief though, the earth actually has ample amounts of gold. It's just that mining is incredibly difficult, and most sources don't contain enough gold to make mining cost effective. Only point 1% of mine prospects actually get developed into a mined. The exploration and development phases often take a decade or more before gold can actually be mined. Given the complexities of gold mining with current technology, the global supply remains limited which keeps prices high.
Gold stock opportunities safe haven, the values of gold stocks are usually incompletely reflected by the price movements of the precious metal gold. Nonetheless, gold stocks can maintain their profitability even when the price of gold is low. In addition, many gold mining companies pay strong dividends which can help provide further incentive for investors to buy gold stocks instead of gold. Unlike currencies, gold is not directly impacted by interest rate decisions and cannot be printed to control its supply and demand. As gold is a scarce asset that has maintains its value over time, and is proven its worth to act as an insurance policy during adverse economic events. And because of this, gold is considered a safe haven by many investors.
Interest rates are likely to stay low or hedge. when interest rates are low gold often makes sense for those looking for a safe haven asset because investors can't get much return from other safe haven investments like that of US Treasury. The Federal Reserve has signaled that it plans to keep interest rates near zero through at least 2023. As a result, gold could continue to hold its appeal for several years to come. Once interest rates creep back up, investing in bonds will make more sense for those seeking returns that can exceed inflation. Gold prices often appreciate alongside rising inflation rates and a depreciating dollar. And for this reason, investors may look to buy gold as a hedging asset when they realize they are losing money. This follows the general logic that gold often maintains its value, or even appreciates when the value of the dollar falls.
Now that it has been settled that gold is a gold investment. Now what's the easiest and most secure way to invest in gold. I present to you the Digital Gold Platform!
THE DIGITAL GOLD PLATFORM
The major aim of the Digital Gold project is to is to tokenize and digitize physical gold asset exploring the amazing features of the blockchain technology. Thus, allowing people to easily purchase physical gold with the digital Gold token.
The Digital Gold platform give clients the opportunity to diversify their portfolios in a safe state since cryptocurrency price is volatile in the market.
THE DIGITAL GOLD TOKEN is based on Ethereum network and is compatible with the most popular cryptocurrency wallets that support Ethereum ERC20 standard tokens
The Digital Gold coin offers an even more comprehensive solution. This token not only provides all the advantages of stablecoins, but also earns you an additional profit, since it constantly grows in value relative to all fiat-pegged stablecoins. This happens since the GOLD token is pegged to gold, and the price of gold relative to fiat currencies continuously increases.
MARKET PLACE FOR DIGITAL GOLD COIN
The Digital Gold Platform creates this marketplace for an easy, effective and efficient purchase of Gold with the Digital Gold token
Here is the link to the Digital Gold marketplace: https://gold.storage/market
CONCLUSION
Investment in gold is primarily for its unique characteristic i.e a store of value. Nations may rise and fall, currencies come and go, equity stocks prices climb in good times only to plunge later. But gold endures
Why not save your assets not but buying your gold via the digital gold platform.
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