Did you know that 10.8% of Americans own gold?
You may have seen the commercials about cash for gold or seen your friends who invest talk about it as a good investment opportunity. If you are new to this area, you might be curious if investing in gold is actually a good idea?
Should you invest in gold? Here are the pros and cons of this investment opportunity.
Pros of Gold
One of the top pros of gold is that it has a reputation of being a protection against inflation. Well, the recent history of its value seems to support that, giving holders of gold insurance against a bad or questionable economy.
An example of this was during the 2008 Housing Crisis when a lot of the stock market collapsed and inflation became a bigger and bigger issue. Around that time, the value of gold was much higher than in previous years.
Another benefit of buying gold is if you have questions about the future value of a local currency. Some people may question how much value the US dollar is going to have in the future with all of the money being handed out by stimulus checks since the pandemic.
If you do not believe in the strength of your local currency, this can be a great way to hedge your bets.
One of the biggest keys to investing is to diversify your portfolio. If you are someone that has a lot of money in your bank account with some cash on hand, you may be looking for another place to put your money.
Well, if you can afford to stash your money away for a longer period of time, gold can be a great investment opportunity with how much the price of gold has gone up over the last couple of decades.
Cons of Gold
One of the main cons of gold is that you may have questions about the long-term value that you are getting out of it. Admittedly, the value of it may not increase fast enough to get as good of a return as you can in other investments that you can use the money for.
Another con can be if you bought gold at the wrong time. An example can be if you bought it back in August of 2020 for over $2,000 an ounce. If you did, then you have actually lost money since you bought, because it is worth less than $1,800 an ounce at the time of writing.
Also, sometimes you do not know if the people or group that you are buying gold from are legitimate. That is why it is important to do your research and get verified reviews, such as from www.raremetalblog.com/patriot-gold-group/.
Should You Invest in Gold?
Should you invest in gold? If you have the spare money to put towards it, it has the potential to bring you back more money than you put into it. Just avoid putting any money that you cannot afford to lose into it.
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