7 reasons why investing in gold pays off
Gold is one of the most valuable commodities that have been around for thousands of years. Are you considering putting your money into gold? Do you want to make a profit? We’ll give you 7 compelling arguments why investing in gold is worth it.
Gold investment as a historical fact
Gold has always been, is and will always be one of the safest investment options. After all, as far back as human history goes, gold has functioned as a valuable form of payment in many forms. Also, in today’s inflationary times, its investment in gold is proving to be invaluable and enduring.
Investing in gold is one of the more conservative methods. One cannot expect huge appreciation. But if you crave stability and security, gold investment is ideal. There are no brutal fluctuations. But in the long run, steady growth.
There’s a quote that says history is the teacher of life. And we could apply that to gold investing as well. Whoever holds this precious metal has money. Each of us should ideally hold at least a piece of gold, perhaps in the form of a 100g bar, in order to have a properly allocated investment portfolio.
1. Investing in gold will protect you from inflation
Want to save? Leave your money in the straw, so to speak, or open a savings account? Investing in gold is a sure thing. If you have 1% appreciation in your savings account, inflation will overwhelm it. Currency, society and countries change. But investing in gold remains.
Example: if you wanted to buy a car before the Revolution, for example a Favorita, you would have paid about 80,000 CZK. That was approximately 500 grams of gold. What would you buy today for 80,000 Kč? Hardly a new car. But if you still had 500 grams of gold, you would certainly buy a new car. It’s worth about 750,000 kroner. You can see how the price of gold has developed here.
In short, investing in gold is a sure thing in the long run.
2. Investing in gold as a safe hedge
We don’t want to paint devils on the wall, but anything can happen. Pandemics, war, inflation… It’s all happening and will happen in the future. Gold is a scarce and finite resource. That’s why it still holds its value no matter what happens.
So investing in gold is a great way to protect your savings and provide security for a rainy day. For generations to come.
3. Investing in gold is profitable in the long term
If you like the adrenaline rush in investing, gold investing may not be for you. Investing in gold is a sure thing in the long run. But even if you are an investment shark, investing in gold should be part of your portfolio. Partly because gold can easily be exchanged for money anywhere.
4. You can exchange gold for money anytime, anywhere
Imagine putting your money into a real estate fund. You have CZK 150,000 and you need it now. You can’t. It can take weeks to withdraw the money. What about investing in gold?
Investment gold is very liquid. That means you can buy it quickly and sell it quickly. That’s handy. Because, for example, you can always have an investment ingot weighing 20 grams with you, perhaps on the go. And you can easily exchange it for cash in a matter of hours. It’s worth about 30,000 CZK. Still doubt the benefits of investing in gold?
We continue with the benefits that will convince you that investing in gold makes sense.
5. Investing in gold is portable and practical
We’ve already covered this advantage of investing in gold above. A one-kilogram bar is worth about 1.5 million crowns. Yet, with a bit of exaggeration, you can hide it in your backpack and go anywhere.
Portability is essential when investing in gold. No matter what, you can take your gold anywhere easily. You can’t do that with any other investment. Therefore, investing in gold is very practical.
6. Gold is disappearing and investment makes more and more sense
Gold is one of the raw materials that are non-renewable. Available deposits are depleted. This makes investing in gold increasingly profitable. Money burns, gold stays.
7. You don’t pay VAT on the sale of gold
Gold is completely exempt from VAT, and if you buy it and then sell it as an individual, you will not pay any tax on the proceeds or income from the sale. However, legal persons who buy for companies are already taxed. Another major advantage of investing in gold.
How to invest in gold?
To put it bluntly, investing in gold is very simple and needs no explanation. You don’t need to research or learn anything. Investing in gold basically means that you buy an investment ingot through an online shop. You can easily start with one gram for a few hundred. There’s nothing to it.
Are you investing in gold or are you still considering it? Do you want to know the current price of gold and follow the price trend? Continue reading to find out all the important information.Continue reading