5 Reasons to Invest

in Gold in Australia

Throughout the ages, gold has remained a valuable asset. Not only has it been used for ornamentation but it has also been used as a medium of exchange. While gold isn’t minted into coins and used to purchase goods directly anymore, it is still an esteemed commodity and storehouse of wealth. Today, we will discuss five reasons to invest in Gold in Australia.

Reason 1: Gold Will Always Have Value

Today’s fiat currencies used in several countries are volatile in nature. They have no intrinsic value which makes them susceptible to devaluation and eventual collapse if economic extreme duress occurs and if the people loses confidence in it.

On the other hand, gold, as a commodity, will always have value. It cannot default nor can it go bankrupt which makes it an excellent safe haven against fluctuations in the financial market and even economic disturbances.

Reason 2: Gold is a Good Hedge for Your Portfolio

Gold is an excellent diversifying investment since it has consistently shown low to negative correlations with other assets. If you include this precious metal in your portfolio, you’re likely to improve its efficiency in terms of higher reward-to-risk ratio. 

In fact according to the largest hedge fund in the world, Bridgewater Associates LP, if you want to be smart in your investments then you should hold 5 to 10 percent of your portfolio in gold to hedge against political risk.

Reason 3: Gold has a Limited Supply

Gold is a finite resource. While there had been gold rush eras in various parts of the world including Australia in 1851, there hadn’t been enough significant gold mines discovered in the last decade. 

Since there is a limited supply of gold, its price is likely to rise in the coming years as demand for it increases as well. If you’re looking for a long-term investment that is highly liquid then gold is the best choice for you.

Reason 4: Gold Retains Its Purchasing Power

People have traditionally invested in gold as a hedge against inflation and for good reason. Unlike fiat currencies whose value is highly affected by inflation, gold’s value remains stable. While it is true that the price of gold is affected by economic conditions, its purchasing power remains stable, particularly in the long-term.

Reason 5: Gold is a Universal Currency

Gold has been around for centuries and it has been historically used as a medium of exchange for goods and services by many civilizations. Today, it remains a recognized and tradable currency worldwide despite not being used to back fiat currencies as widely as before. 

Wherever you go in the world, having gold means having money which means your wealth is not tied to standard fiat currencies.

Top-Notch Gold Storage Solutions from Private Vaults Australia

While many investors opt to have a small amount of gold close at hand in case of emergencies, it’s still wiser to keep the majority of your physical assets in a safe private facility like a private vault or a safe deposit box.

At Private Vaults Australia, we offer top-notch gold storage solutions so your investment is safe from theft and damage. We understand that it’s not enough to know five reasons to invest in gold in Australia and that your gold is only as good as where you store them. If you want to know more about our services, visit us at our facility located at  Cnr 73 Redcliffe Parade and Sutton Street, Redcliffe QLD 4020.

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