Are you thinking about starting to buy gold? You may have heard that it is a solid investment and can always be used for cash if the dollar crashes. Because of this advice being in the news a lot lately, the interest in buying gold is increasing, especially among first-time gold buyers. If you are considering adding gold to your investment portfolio, or converting some of your cash into gold, you should definitely talk with a financial planner to find out if it is the right investment vehicle for you and how to get started. In the meantime, here are three very good reasons to consider buying gold right now.
1. It Diversifies Your Financial Profile
The saying that it's never a good idea to put all of your eggs in one basket is very true in many areas of life, including finances. You don't want to keep all of your money in one place or in one type of investment. If something were to happen to the place where you store your money, you would be broke if it was all in that same place.
Buying gold keeps your financial portfolio diversified. This protects you and your wealth. If one investment vehicle takes a dive, you will still have other investments that are working for you to shore you up.
According to Forbes.com, you should have at least a few percentage points of your investment portfolio in gold. Five percent or less is optimum. It's enough to keep you well-diversified and protected against the ups and downs of other parts of the market.
2. Gold Is Getting Harder to Find
As with any mineral deposit on earth, the readily found supply of it will eventually start to dry up with over-mining. The same is true of gold. There are still plenty of gold mines out there, but they are pulling in less and less gold as they run the mines bare. No new large gold deposits have been discovered recently, though that doesn't mean none will in the future.
While gold production is down, it means the supply of gold in the economy is going to get more scarce. As it does, gold prices will go up considerably, putting it out of reach of most investors. It will become an investment vehicle only for the very rich.
That means now is the time to buy gold while the prices are still reasonable. Then, you will have an investment product with a value that is almost certain to go way up in the future, providing you with a nice nest egg without having to buy more of it later.
3. You Can Physically Own Gold
Unlike many investments, like stocks and bonds, you can physically own gold. This means it is more readily available to you as a form of cash value when you need it. You don't have to sell it and wait for the funds to be converted into cash and sent to you, or wait for the investment to mature to cash out on it like you do with non-physical investments. With gold, you can have it right there, alongside your cash, ready when you need it.
You can also choose to have gold stored somewhere that is easily accessible to you, such as a bank safe deposit box, or with a broker. However, there will be fees associated with this, so make sure the fees are worth it to your investment portfolio before storing your gold away from your actual location.
Investing in gold is a sound financial option for most people. Even if you only buy a little bit of it, its value is almost sure to go up over the long-term. It protects you financially by keeping you well-diversified. Plus, it can always be used for cash anywhere in the world. Talk to your financial planner today about buying gold, or pop over here to learn more.