Everyone has their own preferences when it comes to investments. Some people swear by mutual funds, while others like to buy land and own real estate. One of the main things that turns people off to certain investments is risk--and more specifically, not understanding the risk that comes with owning a particular investment. If you're a little hesitant to invest because you're worried about risk, consider investing in gold. It's simple and easy to understand. Here are four more reasons to start investing in gold today.

Gold has a long history.

The value of other items has come and gone, but gold has held value to humans for centuries. In almost every culture, families use gold as ways to pass on riches from parent to child. It's used in jewelry, household items, and even electronics. The value of an ounce of gold may go up and down over the years, but gold will be valuable for the foreseeable future.

Gold resists inflation.

When inflation occurs, the buying power of the U.S. dollar goes down. But over the years, history has shown that when the cost of living increases, the value of gold goes up! That's because the demand for gold goes up. People see the rising costs, lose trust in the dollar, and buy gold instead. That increased demand for gold drives up its value. If you want to protect yourself against inflation, gold is a good buy.

If the economy collapses, gold may well be the standard of exchange.

There was a time when all U.S. currency was actually backed by gold. A dollar bill was actually an ownership paper that showed you owned a small piece of gold housed in some government building. Those days have passed and U.S. money is no longer gold-backed. However, the gold origin of the dollar shows that gold is looked at as the original currency upon which other currencies are based. If the economy and government were ever to collapse, gold would continue to hold international value even though printed money did not.

Supply is dwindling.

There is a limited about of gold in the world, and demand for gold is rising as others realize it is a good investment. Therefore, the amount of available gold is decreasing, too. This means that, over time, gold will likely become more valuable as there is less of it on the open market.

For more information about investment opportunities you should look into, seek investment services from a financial advisor near you.

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