The Gold Series: Gold as an Investment (Part 4)
October 10, 2012 by Gold Editor
SOURCE:[Visual Capitalist] - Since 2000, gold has outperformed the S&P 500 each year 9 of 12 times.
How does gold behave like an investment and what are the fundamentals of investing in gold? What are the different ways investors can get exposure to gold in their portfolios?
History has shown gold to have several properties as an investment. Gold helps diversify a portfolio and also acts as a hedge against inflation, currency devaluation, and volatility.
Many factors affect the price of gold such as speculation, geopolitical events, supply and demand, and macroeconomic factors.
There are different ways to get exposure to gold in a porfolio: gold ETFs, bullion, and gold mining. Each has different advantages and risks.
Gold is the ultimate store of value. It has the tendency to stay strong in the face of inflation, uncertainty, or currency devaluation. As central banks continue to increase the money supply in today’s economic climate, investors continue to turn to gold as a safe haven for their investments.