DUBAI GOLD | 14 DECEMBER 2024
For millennia, gold has been valued as a symbol of riches, a store of value, and a kind of money. Because it offers consistent returns and value regardless of market swings, it can aid with portfolio diversification. In actuality, a lot of investors use gold as a hedge against economic uncertainty. However, many people ignore gold’s liquidity, which is another compelling argument for investing in it.
Gold is one of the most liquid investments available, meaning you can quickly and easily convert it to cash when you need it.
Because there is always a need for gold, it is quite liquid.
In addition to being a way to accumulate wealth over time, gold is a form of financial insurance. Since the 1970s, the price of an ounce of gold has increased by over 5,000%. Even if there have been declines over the years, gold’s value has risen consistently, especially during uncertain economic times. After the oil crisis in 1979 and the Black Monday catastrophe in 1987, gold’s value increased. Additionally, it increased following the 2020 epidemic, the 2008 recession, and 9/11. There is a certain trend: when times are hard, governments and investors turn to gold.
Consider gold as a long-term insurance policy rather than a short-term trading tool. According to the World Economic Forum, America’s debt has reached all-time highs, and we are currently looking at just around $300 trillion in debt. The debt levels that we have been seeing for the past fifty years will come to an end, just like everything else. You will want your gold to be as liquid as possible so that you can access it in an emergency.
When political issues cause money to leave the stock market and seek refuge in times of systemic disruption, such as Brexit, or when inflation is predicted to take hold and devalue the currency.
You have more opportunity to turn a profit the earlier you can identify drops. There is frequently little opportunity for the price of gold to increase if significant inflation or economic turbulence are not anticipated.
Increased demand from markets that use gold, such jewellery makers, who are thinking about buying gold to profit from possible price pressure that will also drive up the price due to supply and demand.
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