Many are anticipating the prosperity of the year ahead, and a lot of investors are asking whether 2019 is the year to finally buy gold or not. The stock market has been quite volatile since 2017 with stock prices in retreat, while the Federal Reserves are under a lot of pressure with cash deposits struggling to keep up with inflation. So how is gold
Notwithstanding all the pressures from the U.S. dollar, gold has shown resilience and remained a viable investment. In fact, a number of financial analysts predict a well-performing gold this 2019 despite continuing pressures from the fiat currencies.
WHY GO FOR GOLD THIS 2019?
There are many benefits to investing in gold, including the five reasons below:
1. Strong Global Currency
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Gold Bullion Brisbane collectors can attest to gold being a more viable financial investment compared to commonly held assets such as stocks, bonds, mutual funds, and term deposits. It has proven its strength as a global currency throughout history and is proving to be a powerful asset in the present, which is foreseen to continue way into the future. Physical gold is recognised as a global currency, which is easily liquidated.
2. Best Performing Asset
The internationalpolitical and economic crisis will continue to influence the volatility of international markets. This translates to the continuation of similar market behaviours exhibited in the past years, which was fortunately generous to gold investors.The value of gold tends to increase in line with other commodities in times of inflation.
Sadly, compared to gold, intangible assets, such as bonds, shares, and term deposits, are not projected to perform well in the year ahead. The stock market is predicted to continue its struggle. Gold, a tangible asset, on the other hand, remains the 21st century’s best performing asset, with an annual average return of 15% for the past decade.
3. Safe Haven Asset
Ever wondered why it is considered a safe haven asset? The rarity and increasing trading value of gold makes it an ideal wealth plan for the future. In fact, countries and their central banks are obligated to keep a percentage of their countries’ wealth in gold as protection from certain financial risks.
If central banks are stocking up on their gold reserves while the price for the precious metal is down, it makes sense for individuals to also invest on gold.
4. Strong Purchasing Power
Aside from protecting your wealth, gold investment means you can insure more of your money for less. Money is beginning to lose its purchasing power with forecasted inflation rates of 5% in the ensuing months. While the current buying price of gold is at a low, it makes a lot of sense to invest now. This means that investors get to double the income they make on the gold they purchased five years ago. This presents a strong buying opportunity for investors.
5. Tax Advantages
For all the income you make, you have to pay taxes. This includes all the income you make from your investments on bonds and equities. But not for physical gold, which is tax-free. It is also efficient in terms of inheritance taxes, which is why a good number of investors go for gold.
In addition, there is no requirement to register your ownership of gold unlike making investments on shares or banking. Physical gold is considered the only remaining private investment option.
So, if you are still uncertain on whether to buy gold in 2019 or not, then take into consideration the aforementioned reasons to invest in this tangible asset.
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