To The Moon

As investors, we should always diversify our portfolios and often we might neglect having precious metals investment in our portfolio.

I would like to share in this article why we should have Gold as a precious metal investment in our portfolio.

I will be exploring the reasons why gold continues to be a wise choice for investors seeking stability and preservation of wealth over the long term.

Throughout history, gold has held a special place in human society as a symbol of wealth, prestige, and value. Its unique properties, scarcity, and universal appeal have made it a strategic investment for the long run.

Despite the modern financial markets' ever-changing landscape, gold remains a reliable store of value and a hedge against economic uncertainties.

A Hedge Against Inflation

One of the primary reasons why gold is a strategic investment for the long run is its ability to act as a hedge against inflation.

Inflation erodes the purchasing power of fiat currencies, but gold's scarcity and limited supply mean that its value tends to hold up over time.

When the cost of living rises, the price of gold often increases as well, providing investors with a safeguard against the devaluation of their wealth.

Safe Haven Asset

In times of economic turmoil, political instability, or market turbulence, investors flock to safe-haven assets to protect their portfolios.

Gold has a proven track record as a safe-haven asset, gaining value during periods of crisis when other assets might falter.

Its status as a reliable safe haven is attributed to its inherent value and universal acceptance as a form of currency and store of wealth.

Diversification Benefits

Diversification is a crucial strategy in investment to reduce risk. Gold offers excellent diversification benefits since it has a low correlation with other asset classes, such as stocks and bonds.

When traditional financial assets experience volatility, gold often moves in the opposite direction, providing a counterbalance that can stabilize a portfolio.

Limited Supply and Tangibility

Gold is a finite resource, and mining it requires substantial effort and cost. This limited supply helps maintain its value over time, as increased demand cannot be met with an unlimited influx of new gold.

Additionally, gold's tangibility gives investors a sense of security, as they can physically hold and possess the precious metal, unlike many other modern investment vehicles that rely on intangible assets.

Historical Track Record

Gold has been a store of value for thousands of years, enduring various economic upheavals, political changes, and technological advancements.

Throughout history, civilizations have recognized gold's worth, using it as a medium of exchange, a unit of account, and a store of wealth.

Its resilience and continued relevance over millennia have cemented gold's reputation as a reliable long-term investment.

Central Bank Reserves

Central banks worldwide hold substantial amounts of gold in their reserves. This practice highlights the confidence placed in gold by nations as a safeguard for their monetary systems.

When governments and central banks demonstrate faith in gold, it strengthens its position as a strategic investment for individuals as well.

Summary

While financial markets constantly evolve and investment opportunities abound, gold's appeal endures as a strategic investment for the long run. Its ability to hedge against inflation, act as a safe-haven asset, offer diversification benefits, limited supply, tangibility, historical track record, and recognition by central banks all contribute to its timeless allure.

As investors we will be navigating an ever-changing economic landscape, including gold in their portfolios can provide stability, protection, and potential for long-term wealth preservation.

However, as with any investment decision, individuals should conduct thorough research, we should consider our financial goals.

Here is one investment you may want to consider to start your journey in investing in precious metal (GOLD).

$SPDR Gold Shares(GLD)$ It is available to trade in USD under O87 and SGD under GSD. For more information you can check on Tiger App.

Appreciate if you could share your thoughts in the comment section whether you think Gold is an investment you would consider to have in your portfolio.

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.