Successful investors have physical gold in their portfolio—here’s why

Image source: wsj.net

Gold has maintained its status as one of the most valuable assets throughout history and even in the present day, it is considered by most investors as a safe haven, providing a much-needed protection against uncertainties of every economic turmoil that we might face nowadays.

Many young and experienced investors know the upside and the downside of investing—but in gold, all of them can agree that the benefits, especially during crisis, outweigh the risks.

So why should we look at gold and include it in our portfolio? First of all, gold maintains its value regardless of both financial and geopolitical uncertainties.  As a “crisis commodity,” it provides refuge for investors as a relatively safe and stable asset. In fact, gold has the ability to outperform other investments especially during the darkest financial times.

Image source: telegraph.co.uk

Real gold can last for hundreds and thousands of years while its value accumulates over time without easily being threatened by constant and rapid decline of stocks and bonds caused by unpredictable and inevitable economic chaos.

Diversifying one’ portfolio and including physical gold means adding extra protection against unfavorable market performance and paper investment declines, effectively reducing risk and overall volatility (talk to an advisor now at LOM Financial to get started). In addition, unlike its digital and intangible counterparts, gold as a literally physical investment and a tangible asset can’t be hacked or wiped out.

There’s a strategic reason why gold has been held by many governments as well as the world’s wealthiest individuals. As a part of your portfolio, gold is a direct investment and an inflation hedge, not only of the promise of its higher value in the future but as a shield against a potential market crash.

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