Should I Invest in Gold?

Investing 3 Mins Read February 12, 2022 Posted by Mashum Mollah

Last Updated on: November 7th, 2024

Did you know that more than 750,000 pounds of gold were mined during the gold rush of 1849? At the time, investing in gold was a no-brainer. Hopeful miners would move their families out to California with nothing but a pickax and dreams of a lucky find.

Today, investing in gold is a more difficult prospect. Will it rise or depreciate in value over time? And, with so much focus on NFT and virtual investments, is there still value to physical investments?

If you’ve found yourself wondering, “Should I invest in gold?” you’ve come to the right place. In this article, we’ll be discussing all you need to know about this investment opportunity!

A Physical Investment

Investing in gold can seem a little antiquated. It’s not too far off of a pirate storing up gold coins.

Goldbugs, or proponents of gold investing, advise investing in gold because it offers a diverse investment opportunity. Modern investments like NFTs and cryptocurrency are volatile and unpredictable. And because they are virtual, they can go away.

Gold, on the other hand, has a physical presence. It won’t disappear if the internet goes down and it’s guaranteed to always have some amount of intrinsic value. This makes it a much less risky proposition.

In addition, investing in gold is a way to protect your assets against the potential collapse of currency. Even if the market crashes, your gold bars are still safe and valuable.

This is precisely why gold is readily marketable. A visit to your local gold buyer ensures optimal prices when the need to sell arises, making the process notably convenient.

The Modern Gold Rush

As of the first week of January, gold sits at approximately $1,800 per ounce. Analysts project that gold will reach new highs in the year 2022. It’s projected to reach as much as $2,100 per ounce!

The reasons behind the projected price increases are the weakness of the US dollar and current rates of inflation. So if you get in on this mini gold rush now, expect it to pay dividends during the year.

However, analysts project that gold won’t rise in value much further than $2,100. This suggests that it’s best to stock up on gold sooner rather than later.

Bringing Gold Into the 21st Century

If you?re interested in the potential benefits of investing in gold but don?t want to invest in an antiquated asset, don?t worry. The gold industry has done plenty to bring it into the 21st century, for example, Cayman Financial Review offers some expert advice with regard to the best iras for gold at this time.

You don’t have to limit your investments to doubloons. Instead, consider buying shares of companies that mine gold. You can also purchase gold exchange-traded funds (ETFs).

Trading options and futures contracts are another way to invest in gold in a more modern way. They allow you to enjoy the stability of gold investment but have more liquidity and are more diverse investments.

In addition, you can use your gold to set up an IRA that’s backed by precious metals. A company like Lear Capital can help you explore this option here: https://www.raremetalblog.com/lear-capital/