Advantages of Investing in Gold

Gold as an asset class has been making constantly new highs since year 2007, even when the whole world was in recession and every other asset class was getting butchered, gold was rising and it was the best performing asset among all other assets like equity, commodity, real estate etc….. Given below are some of the advantages which make gold an attractive investment –

1. In times of high inflation, investment in gold can be a better option as gold is considered as excellent hedge against the inflation and with the fed announcing quantitative easing inflation will be high only in coming months.

2. If one wants to invest in gold then they do not have to bear the risk of theft or inconvenience of storing it as now people do not have to buy gold in physical form, rather they can buy gold just like mutual funds in the form gold ETF.

3. Since gold has international value at all times and with dollar showing signs of weakness and some people even saying that dollar may collapse also, in that case gold will be an excellent investment.

However only risk involves in purchasing or investing in gold is that it has run up too much in recent years and therefore may not give this type of stupendous returns; still it is one of the safest investments in this time of uncertainty and inflationary conditions.

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