Gold Investment
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Gold Investment - Why invest in Gold? 

Investors normally buy gold or invest in gold for two fundamental reasons:

  • Hedge or Safe Haven (Store of Value) - An investment in gold is known for being an excellent financial hedge or safe haven against adverse economic, political and social changes. Gold has proven time and time again that its an unbeatable store of value during the most trying of times.

  • 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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Special Note               

"Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time" - James Blakely.