5 Reasons You Need Gold in Your Investment Portfolio

Jakarta, IDN Times – Gold is one type of instrument that is very useful for diversifying investment portfolios. Apart from being a precious metal that is in great demand, the value of gold also tends to be in contrast to other investment assets such as equity or property.

Thus, when stock or property prices fall, the value of gold is likely to rise so that investors who have diversified their investments into gold can breathe a sigh of relief because not all of their assets have weakened in value.

In addition to these advantages, OCBC NISP’s flaming room describes five reasons why you need to have gold in your investment portfolio.

1. As a guardian of the value of wealth

5 Reasons You Need Gold in Your Investment PortfolioGolden Illustration (IDN Times/Aditya Pratama)

Inflation, which is known as a currency eroder, is the main reason you should have gold as an investment instrument. You need gold in order to maintain the value of the wealth you have in the future.

Gold has historically been a good hedge against inflation so its price tends to rise over time.

In addition, gold also qualifies as a good store of value because it can be stored, retrieved, and exchanged for other assets while maintaining its purchasing power.

Also Read: Gold Medals Make You Proud But Gold Investment Makes You Rich, Here Are 5 Tips

2. Have high liquidity

5 Reasons You Need Gold in Your Investment PortfolioGold Illustration. (IDN Times/Aditya Pratama)

Gold has been valued since the past until now so it is very easy for you to be able to exchange gold for cash.

Therefore, the value of gold which tends to be stable will make you as the owner will receive an amount of money with a nominal value of approximately the same.

On the other hand, investing in other assets such as stocks which in fact are high risk can cause large losses in the event of economic uncertainty.

Continue reading the article below

Editor’s picks

3. It is universal

5 Reasons You Need Gold in Your Investment Portfoliogolden illustration (IDN Times/Aditya Pratama)

Gold as a valuable asset is recognized by anyone in various parts of the world. This makes gold have the properties of universal money. In other words, gold can be used as a transaction tool wherever you are.

For those of you who own gold, it certainly provides financial security when compared to investing in other assets.

4. Have a high demand

5 Reasons You Need Gold in Your Investment PortfolioGold jewelery in a gold shop (IDN Times/Saifullah)

The use of gold is not only as an investment asset, but is also used for various things such as jewelry and technology.

For information, the biggest demand for gold comes for the jewelry sector. At least 50 percent of the demand for gold is intended to be used as jewelry.

This high demand for gold will later play a role in pushing up gold prices in the future.

Also Read: Gold Investments Are Easier, Now GoldKITA Sold From 0.1 Grams

5. Easy to do for novice investors

5 Reasons You Need Gold in Your Investment PortfolioGold Illustration. (IDN Times/Aditya Pratama)

Gold is considered an easy form of investment. You as an investor only need to buy according to your existing financial capabilities.

Then, you just have to keep it for a long time so that you can benefit from the difference between the selling and buying prices of gold.

You can get that convenience considering that currently you can buy gold easily, namely through various existing digital platforms. That way, you can invest in gold without the need for a lot of capital.