DUBAI GOLD: PRESERVING & PROTECTING WEALTH - Goldy Precious Jewellery Trading LLC, Dubai

DUBAI GOLD | 25 JANUARY 2025

The same quality that makes gold valuable is its scarcity and rarity, properties that have captivated humans for centuries. However, how uncommon is gold? The world generates more steel in an hour than it has poured gold since the beginning of recorded history because gold is so scarce!

It also serves a variety of purposes. Approximately 25% of the gold used today is used for coins and bars, and more than half is used for jewellery, although gold is also used extensively in industry. The demand for gold is significantly influenced by technology, which is utilised in everything from iPhones to electric vehicles, along with other precious metals.

But why does gold continue to be a crucial component of any astute investor’s portfolio in the digital age, when there are so many options for investing your money?

While everyone has different motivations for investing in gold, many people do it to safeguard and preserve their riches.

Many people pick gold to diversify their holdings and shield the remainder of their portfolio from risk. Since it is usually good to build a balanced portfolio with a variety of investments, very few people would decide to put all their money into gold.

For this very reason, gold is a popular choice among investors, enabling them to diversify into other markets. This is allegedly since gold prices are typically inversely tied to stock market prices, rising when other markets decline. For this reason, gold has historically been regarded as a “safe-haven” investment. Part of the decline in stocks and shares during periods of market turbulence can be attributed to investors shifting their holdings from “riskier” assets to gold, which is a safe haven.

Finally, the potential financial rewards, particularly over an extended period, are another reason why some investors select gold. Simply said, you can sell it – ideally at a profit – if you purchase it and hang onto it until the price increases.

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