Gold as a long term investment

Gold as a long term investment; Some Medias say no to gold being a long term investment by pointing it out that gold has been in a bear market since 2011. Therefore they claim that stocks are a better investment than gold not only do they say that they also remind you that gold doesn’t pay dividends. However today you are going to understand the real facts about gold and as to why it should be considered as a long-term investment. These facts are here to prove to you why gold is an unbeatable long-term store of value and why buying now could be an exceptional long term investment

Gold Fact 1: Gold is not a commodity

 

Most analysts combine gold with all other commodities yet it’s not. the reason why gold is not a consumable is that it’s not eaten either is it discarded after use like any other commodity such as paper, cotton etc. it’s on record that most of the ever mined gold still exist even up to date. According to statistics, approximately 12% of gold’s total annual supply is consumed by the industry. It’s used in dentistry, medical fields, aerospace, computers and other electronics. The other 88% of supply is used for investment and jewellery fabrication. We all know that jewellery use is actually a form of money all over the world. Other cultures in the east buy old jewellery as a store of value instead of coins and bars. This is why the demand for gold is more or greater in Asia than in the West or Europe.

Gold Fact 2: Gold is money itself

 

Gold is money itself because it’s valuable and it’s a proven long-term store of value. It’s been throughout history for year’s it’s the only metal whose predominant use is as money. Am sure you know that gold is the only universally accepted form of final settlement so if you did not know now you know. Dot you ever think of stocks and bonds on the other hand because they represent claims and assets. Their value rests on the issuer’s ability to fulfil their promise. Therefore all stocks, bonds, currencies and financial assets carry the risk of default. The fact that physical gold does not hold its risk means that it’s a value that does not hinge on someone else’s obligation to pay which is one of the primary advantages of hold physical gold.

Investor Key: Gold is the only financial asset that requires no other obligation to be made good. If you hold physical gold, you have zero default risk.

Note: read more in the next article that satisfies you to invest in gold as a long-term investment