Gold Investment -
Why invest in Gold?
Investors normally buy gold or invest
in gold for two fundamental reasons:
-
Wealth Accumulation - An investment in gold has proven to be an excellent means of accumulating
wealth. Prudent investors normally buy gold (or invest in gold) during a bull market or market upswing
when it is more affordable to do so. The reason for doing so is because the gold price has a tendency
to increase substantially during a bear market or downward swing. In addition to this, the value of
gold steadily increases over time, which makes an investment in gold an excellent means to accumulate
wealth.

Other reasons why investors should invest in gold
include:
- Buy Anonymously
Most investments in gold can be done anonymously. If you've got the option, it's best to keep your investment in gold confidential.
- Divisible
Unlike property and other assets, most investments in gold can easily be divided between the beneficiaries of an estate.
- Effective Portfolio Diversifier
Gold offers investors effective portfolio diversification, since it is negatively correlated with other asset classes.
- Estate Duty Free
Gold bought in the form of gold bullion coins are estate duty free.
- Full Control
Most investors seek full control when it comes to the management of their investment portfolios. An investment in gold through the physical ownership of gold bullion offers that and much more.
- Internationally Accepted
Gold, especially in the form of gold bullion coins, are worldwide accepted as a financial mechanism.
- Liquidity and Portability
An investment in gold provides liquidity and portability, especially when one invests in gold bullion coins.
- Low Risk Investment
An investment in gold is a relatively low risk investment, if one considers that gold returns are significantly less volatile than the returns on gold shares (gold equities), and on par with the broader market.
- Perfect Gift / Reward
Gold is a perfect gift/reward since it offers much more than most gifts/rewards. Gold shows the receiver that you really value his/her efforts when given as a reward, or that you truly care when its given as a gift to a loved one.
- Positive Track Record
Gold has a positive track record in terms of investment returns when compared to the broader market.
- Rand Hedge
An investment in gold provides a perfect hedge against fluctuations in the value of the Rand.
- Real Purpose
Do not be fooled by those who advise people not to invest in gold. One of their favourite excuses why people should not invest in gold, is because gold has no real purpose according to them. This is a blatant lie.
- Rust Free
Gold doesn't rust away and can be alloyed with other metals to make it more durable, which makes it perfect for investment and other purposes.
- Stable Market
Gold provides a relatively stable market for investors since there are literally millions of buyers and sellers world wide.
- Tax Free
An investment in gold in the form of gold bullion coins is not subjected to VAT.
- USD Hedge
An investment in gold provides a perfect hedge against fluctuations in the value of the USD.

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