Physical gold is...
1. Independent from stocks and bonds
The fact gold prices can perform independently from the stock market makes gold an excellent choice of asset with which to diversify a portfolio and sources of revenue.
2. A private source of wealth
The main difference between purchasing physical gold and merely investing on it lies on the fact that the former provides you with a private source of wealth that you safely store at home. You can acquire as much physical gold as you wish your wealth to grow from online suppliers such as the Global InterGold Online Gold Shop.
3. A time-proven safe haven asset
Investors have always placed trust in gold in times of financial uncertainty. Alan Smith describes a couple of recent instances in 'The Huffington Post': during 2008's financial crisis, “the price of gold doubled within three years.” And, “since the start of 2016 when many Asian currencies weakened, their central banks opted to buy gold as a better store of value than their own domestic currencies (…) [Gold] has without a doubt, become a safe haven asset class in difficult market environments.”
4. Real safety
Another advantage of purchasing physical gold over opting for investment gold products such as gold warrants or certificates is that you avoid facing what is known as 'issuer risk'. This refers to the risk of losing a considerable amount of money as a result of your investment. 2008 was a year full of these cases. However, this risk is not existent in physical gold because, once more, it can be privately and safely stored at home.
5. Protection against inflation
Meaning that the value of gold increases when currencies weaken. Protecting against inflation is an intrinsic characteristic of gold, which nowadays is seized as the preferred financial hedge.
6. Limited and highly valuable
While gold prices may fluctuate, the experts agree that since gold is a limited resource, it will never lose its value. On the contrary, the value of physical gold can only increase over the course of time. The demand for physical gold is increasing in emerging market countries. This confirms that more and more individuals realize that owning physical gold can not only protect but grow their wealth from home.
7. Tangible and present in your home
Unlike investing, another benefit of owning physical gold is that the asset is tangible. This does not add something else to its value, but undoubtedly, being able to touch and hold in your hands what brings safety and wealth to your home is a coveted feeling of stability.
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