Why is gold one of the best performing assets

Historically, and for a good reason, gold has been considered as a valuable and sought-after asset. Here are some of the reasons why gold is one of the best performing assets and why one should buy from Instant Gold Refining, who is at the heart of the Vancouver Gold & Silver market:

  1. Gold is a Safe Asset: Investors see  gold as a safe haven asset during uncertain or volatile market times. This is due to the fact that during periods of economic or political crisis, gold tends to hold and/or  increase in value. This makes it a valuable asset to possess during uncertain time periods.
  2. Gold as an Inflation Hedge: Gold is regarded as a hedge against inflation. When inflation hits, gold tends to hold its value while paper money’s value falls. The reason is the limited supply and lack of  connection to any government or central bank. As a result, gold can aid in preventing the loss of purchasing power brought on by inflation.
  3. Investing Diversification: People can  use gold as a tool to diversify their portfolio. Investors can lower their overall risk and possibly increase their returns by including gold in a portfolio besides stocks, bonds, and other assets. The goal is to have a balanced portfolio, as gold typically has a low correlation with other assets.
  4. Gold Supplies are limited: As a natural resource, Gold is a limited element in nature. It cannot be created by humans and we depend on mining advances to extract it from the earth. As technology advances quickly, we have been able to mine it at a faster pace and deeper levels. However, as nature takes thousands of years to produce gold, humans are much faster at extracting it in the gold mines. As it happens with all limited quantity  products, prices increase as gold production decreases in the placer mines. 
  5. Gold is a Tangible Asset: Unlike stocks or paper money, gold is a tangible asset to keep in our homes and safes. When a financial crisis arises worldwide, paper money and assets become useless and they lose all their value, however, gold is a physical asset that always maintains and increases its purchase power for that same reason, we can touch it. It is also worth mentioning that gold can be traded all over the world as a form of currency and be of the same value everywhere. 

As a result of its many qualities mentioned above, gold is one of the best investments that we can make. It can serve as an asset during periods of market uncertainty, protect us against inflation and help us diversify our investing portfolio. History has proven that Gold is and will be the most valuable asset for investors for many years to come because it is a tangible asset and its supply is limited and decreasing with time.

Here at Instant Gold Refining, we can help you with all of your investment needs when it comes to Precious Metals like Gold & Silver. Give us a call at +1 (604) 498 5001 to talk with a team member regarding your Precious Metal needs.

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