While physical gold was formerly considered a great form of investment, this is no longer the case for several reasons. Below are five reasons why you should avoid buying physical gold as an investment. Technically, gold certificates are not stocks, but they represent an investment in gold that does not include physical possession of gold. Stable, independent, confidential, highly liquid, easy to manage and safe against many risks, physical gold is an asset that you must take advantage of to protect your assets and diversify your portfolio.
Who has the best Gold IRA? Investing in a Gold IRA is a great way to ensure that your retirement savings are secure and protected. However, there is much more at stake in terms of whether you should invest in physical gold or in gold stocks. Physical gold often rises in value when the stock market performs poorly, but gold stocks don't. Physical gold is tangible, maintains its value over the long term and is highly liquid, making it fantastic for preserving wealth. Just as physical gold is not tied to a government or financial system, neither is the ownership of physical gold.
Owning gold means you don't have to worry about earnings reports, changes in dividend and interest payments, or shareholder discontent. These are just a few of the reasons why you should buy gold, and physical gold is a much more attractive investment than paper gold. Physical gold, as a tangible asset, is also safe from cyber attacks and the risks of hacking that paper gold may have, especially if that paper is kept electronically. And while other investments and fiat currencies have come and gone, physical gold is still highly valued, even after thousands of years.
Physical gold is a more stable investment that you own and store in an IRA-certified account. In fact, by holding physical gold as a reserve asset, central banks can stabilize their fiat currencies in a way that is not possible with paper gold. While physical gold maintains its value and is easily liquidated, bought and sold easily, paper gold is the victim of increased oversight and regulatory requirements, as well as counterparty risks and possible collapse. Physical gold retains its value and purchasing power even for long periods of time, remaining firm in the face of inflation.