Gold investing myths busted: What to know now
Gold is a good investment for many reasons. It holds its value despite market fluctuations, making it a solid hedge against inflation. It helps you diversify your portfolio, which safeguards against loss from riskier investments like stocks. It's also more liquid than other investment vehicles, so you can exchange it quickly for cash if you need money.
But many people aren't as familiar with gold as they are with other investments. As a result, there are some common misconceptions that might keep them from considering it. In this piece, we'll explore these misconceptions to help you better understand your options.
If you think you could benefit from investing in gold, start by requesting a free information kit here.
Gold investing: 5 myths debunked
It's important to understand the pros and cons of any investment you're contemplating. Here are five gold investing myths to be aware of.
Only rich investors can afford gold
Don't be fooled by images of the ultra-rich flashing gold-plated everything. You don't have to be wealthy to invest in gold. There are plenty of ways to invest in gold, from bars and coins to stock shares, and you don't need a ton of money to do so. Whatever your budget, there's a gold investment to fit it.
Investing in gold is risky
Of all the ways you can invest your money, gold is low on the risk meter. In fact, it's historically been considered a safe haven because it maintains its value despite things like rising inflation and economic uncertainty. That makes it a smart addition to a diversified portfolio.
Gold is hard to buy and store
In the past, gold wasn't the easiest investment to make. The only option was buying physical gold, which can be difficult and pricey to store safely. But these days, there are many ways to invest in gold, most of which don't require owning the physical metal. Investing in gold is as easy as investing in any other asset.
Request a free information kit now to learn more about this unique investment opportunity.
Gold is obsolete
In a world where many transactions are digital, gold may seem like a relic of the past. But it's a great investment precisely because it's one of the oldest forms of currency and its value consistently remains stable. Paper currency's value can fluctuate wildly based on factors like interest rates and how much money a government prints. And we've seen how volatile cryptocurrency's value can be. Gold, on the other hand, has been and remains a safe and reliable investment.
In fact, many central banks — including the Federal Reserve — keep gold reserves to mitigate risk and promote stability in times of economic turmoil. Gold has stood the test of time, making it a valuable part of any modern-day portfolio.
Gold doesn't pay returns
It's true that physical gold doesn't pay interest or dividends. You might be able to earn dividends with other gold investments, such as ETFs, but even if you don't, you'll still get a return on your investment. Because gold is safer than other investment vehicles, it provides a competitive return over the long run, even if you don't see any short-term dividends.
The bottom line
Gold is an easily accessible investment for any investor, whether you're a beginner or a seasoned pro. It's also a valuable part of any portfolio. You have lots of options when it comes to investing in gold, from bars and coins to IRAs and futures. As with any investment, be sure to thoroughly research your options and take your budget and goals into consideration. If you're not sure which option is best for you, don't hesitate to seek professional guidance from a financial planner.
