You would not be alone if you have been looking at the gold market recently. Inflation has made it expensive to keep your savings in cash, and there have not been many easy wins on the stock market, either.
Alternative assets can offer unexpected sources of growth in an otherwise tough market. Gold can open new opportunities for growth in your portfolio. Understanding how gold can benefit you and how to buy it reliably will help you make the most of this asset.
How To Reliably Buy Gold Bullion
Gold bullion is a tangible asset that’s relatively easy to take possession of. As long as you have a home safe and insurance, you can buy the real, physical asset and store it close to hand. This means you don’t have to worry about the management fees that come with an ETF and the risk of leaving your assets in someone’s hands.
The first step is finding a trusted source for bullion. Local and online bullion dealers fill this niche. If you choose to buy gold online, you can get it shipped securely and discreetly with insurance. If you’re not sure about a bullion dealer, check reviews online and make sure the dealer has a long history in the industry.
Why Should You Buy Gold In 2023?
1. The Ultra-Rich Own It
Gold has a reputation as an unorthodox investment, but you might be surprised to learn that the world’s ultra-rich regularly include tangible assets like gold, real estate, and even fine art in their portfolios.
Due to the large size of their portfolios, they can extend their reach into a number of illiquid assets. They are less susceptible to market swings and retain value in the long run, making them invaluable when your goals include wealth preservation.
2. Gold Does Well When The US Dollar Is Weak
The US dollar is the most important reserve currency in the world, and it’s often held by investors who want a safe, liquid asset that is relatively stable against global economic and political uncertainty.
When the US dollar falls compared to other global currencies, some of that money tends to filter into gold, a phenomenon that was widely seen during the rise in gold prices in the 2000s. Gold is often seen as a safer alternative to liquid cash during extended periods of uncertainty.
3. Limited Supply And Increasing Demand
Gold has been one of the most valuable resources known to humankind for thousands of years, and as a result, it’s become increasingly difficult for mining companies to locate it and bring it out of the earth. By some estimates, only about 20% of the earth’s gold remains to be mined.
At the same time, demand for metal continues to rise steadily. Most central banks in the world keep deposits of the precious metal, as do a growing number of private citizens. Rising wealth in developing economies is only pushing demand higher. Scarcity has the potential to drive gold prices higher as long as demand remains strong.
Investing in gold can give you new chances to grow your savings and make the most of a whole new market.