Would investing in gold be worthwhile?

Would investing in gold be worthwhile?

Gold is considered as one of the most expensive and rare precious metals on the planet and is also the most famous, always considered as a currency of exchange. Although there are also other precious metals that can be purchased both as decorative elements, both as a refuge to safeguard a capital, gold is still the most traded and requested. To be able to evaluate gold and have an accurate quotation, however, it is essential to understand the degree of purity of the specific object.

The history of gold tells us that this metal has always been considered the refuge for excellence. Investors, both private and institutional, in recent times are increasing the stocks of gold in their coffers. The main reason for this behavior is derived from one of the assumptions of modern economic theory, namely that the demand for gold will never fall in the medium to long term: consequently, the price of gold tends to be very stable over time and that is why it is considered a safe investment. Investors who decide to buy bars, coins and, in general, gold items have a sufficient certainty to retain their purchasing power over time, even if the investor were to decide to sell the items after a long time.

The purchase of objects and gold bars is a very intelligent strategy to safeguard the money from inflation and is obviously also a great way to earn money if the price of gold increases significantly, what is happening in recent years.

Inflation is, by definition, the rise in consumer prices. Therefore, the person who undergoes the inflationary process will be able to buy a certain quantity of goods with a higher quantity of money, as the price of such goods tends to increase. And it is for this reason that private investors, as simple citizens and institutions, as banks and governments, turn to the purchase of gold: it is an excellent way not to suffer the burden of inflation. Investment in gold is safe and relatively stable.

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