What does gold hold that keeps investors coming back time and time again?
Gold presents a uniquely versatile investment situation, because of its dual nature as both a consumer good and an investment asset. This means it can deliver effective diversification in periods of financial turmoil and recession, while also benefiting from growth in both jewellery and technology demand during periods of strong economic growth. At its core it’s a store of wealth that is an alternative to the riskier options of investment, and has proven time and time again to be a safe choice.
Investment portfolios can benefit from gold as it becomes an effective way to hedge against risks like inflation. Gold has also historically performed well in periods of financial turmoil, meaning investors can use it for diversification and as a source of liquidity.
Because gold is a scarce resource with value that doesn’t depend on the creditworthiness of its holder, it has maintained its value for thousands of years. In reality, it’s gold that helps investors manage the risks that other financial assets bring; playing a role in creating a more balanced and stable investment.
A flexible, accessible choice, gold flows freely with more than $200bn traded on a daily basis. Because of its liquidity, gold is useful in times of both expansion and recession with gold able to meet their most immediate needs.
