5 Reasons Buying Gold is Never a Bad Investment

At Landmark Capital we know and believe that gold and other precious metals are never a bad investment. You might be asking yourself why we believe that and what makes so confident. Well there are plenty of reasons for our belief but we won’t get into all of those today. Here are our 5 reasons buying gold is never a bad investment.

Rich History

For years and years gold has held its value unlike many paper currencies. The earliest use of gold coins stretches around 500 B.C. in the rule of King Croesus of Lydia. It has continued to maintain value throughout the ages and even people today see gold as a way to pass on and preserve wealth.

Inflation

At Landmark Capital, we believe that gold is a hedge that protects against inflation. Since World War II, there have been five years that inflation was its highest. Those years were 1946, 1974, 1975,1979, and 1980. During that time the average return on the Dow Jones was -12.33%. Guess what gold’s average was… 130.4%. It has even been steady throughout more recent years such as the 2008 crisis.

Supply Constraints

Since the 1990s, much of the supply of gold in the market has come from sales of gold bullion from the vaults of global central banks. Production of new gold from mines had been declining since 2000. Annual gold-mining output fell from 2,573 metric tons in 2000 to 2,444 metric tons in 2007. In general, the supply of gold increases gold prices with reduction of production. With the U.S. printing dollars like nobody’s business, gold is a much better option.

High Demand

The increased wealth of emerging market economies boosted demand for gold in past years. In some of these countries gold is intertwined with the culture. India is one of the largest gold consuming countries in the world. They use gold for much there, including jewelry. In China, gold is seen as more of an investment. The Chinese buy gold bars as a traditional form of saving.

Portfolio Diversification

The key to any investment portfolio is diversification. You will want to find investments that aren’t too closely correlated. Gold is seen as more of a constant when it comes to investing. It may not make you a ton of money right off the bat but it will keep you safe among your volatile stocks. In the 70s gold was doing great and stocks not so great, in the 80s and 90s it was flipped. Then in 2008 they flipped back again. So to have gold in your portfolio is to have a safe haven against the stock market.

Contact Landmark and Get Started

If you are feeling that you are ready to get started with your gold and precious metals investments, it’s time to contact Landmark Capital. We understand that many people feel that gold investment is complicated. We are here to simplify that process. Give us a call at 877-448-2646 or visit our Contact Us page!