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Why gold?
Asset diversification is a sound strategy, and gold, in moderation, should be part and parcel of any family portfolio. It has been used as a currency for 6,000 years and is a safe, stable and conservative form of investment. Those who own gold possess the only true currency.
Gold serves two primary purposes:
- it has a well-established historical track record as a store of value
- it is historically proven to be a hedge in times of crisis
Main advantages
- as a store of value, it shields savings from inflationary erosion and grows in value over the long term
- as a hedge in times of crisis, it helps to ride out periods of uncertainty, political and economic turmoil, and military conflict
- when it is part of a soundly diversified portfolio, it stabilises the overall value of assets and reduces the level of risk
- gold is highly liquid – it can be converted into fiat currency within 24 hours, it can be sold anywhere in the world, and it is a universal means of payment
- gold is very mobile – you can travel with gold all over the world and a great deal of wealth is hidden in a small amount
- gold is an anonymous asset, so there are no disclosure requirements when selling or donating it
- gold is a scarce resource in limited supply, since 80% of available reserves have already been extracted, mining costs are rising, and it cannot be reproduced artificially
- gold as an investment is within everyone’s reach and, because it can be purchased incrementally, the purchase price can be averaged over time