July 09 2020

Gold VS Main Investment Options: Which is the Safest?

If you were surfing the web searching for the most efficient investment options, then you landed in the right place.

Indubitably, gold is what you are searching for. Since 4000 B.C., possession of gold was a sign of wealth and status restricted exclusively to the royalty and nobility. Afterward, Many countries came to use gold coins as currencies for centuries. Acknowledging its valuable worth, the ancient goldsmiths worked tirelessly extracting it from the deepest gold mines in order to use it in the different aspects of life other than just manufacturing jewelry.

Choose gold as safest investment options

Since we are living in the 21st century, does gold still hold the same prestigious position? Is it still a capable investment with the ability to provide gains? The answer is definitely yes!

Here are the benefits of investing in gold nowadays:

  • Gold mitigate losses in times of market deficiency
  • It offers protection and positive performance
  • It’s one of the only forms of private investment left today
  • It’s a legacy that can be inherited
  • It’s one of the most effective diversifiers
  • Certain types of physical gold are free from any tax on growth
  • It’s a universal currency that can be easily liquidated anytime you want
  • It carries no counterparty risk
  • Its finite supply ensures its lasting value

Here is another convincing evidence, Central banks are still bound to own a specific percentage of their assets in gold, in order to protect themselves from any fiscal deficits.

For the aforementioned reasons and several others, gold has always been a sought-after commodity due to its value and reputation as a hedge against monetary collapses.

This precious metal is simply a powerful asset for the future. Investing in gold is an excellent way to protect your wealth and ensure more of your savings for less.

As an investor, you have a lot of options for where to invest your money. It’s important to weigh your options carefully and smartly.

Where does gold stand among other investment options?

Without further ado, here is a comprehensive comparison between gold and the most common investment options in UAE.

Gold vs Stock Market

Commonly-known as the default investment option, investing in the stock market is the action of purchasing stock in a company of your choice. In return, you will have a small piece of that company’s earnings and assets.

On the one hand, a company that seems to be a major hit in the business one day could plunge the next, and all it takes is some negative rumors or bad media exposure to suddenly lose its value. Moreover, a company’s success is tied by endless factors and determinators. It can go down the drain due to some employees who are slacking off. It’s as simple as that.

On the other hand, gold is a physical asset with a proven track record for stable growth. It’s the safe haven. The value of which tends to increase when confidence in the financial market is low. It protects you against unpredictable swings and the counterparty risk involvement.

 Gold vs Saving Account

Gold vs Banking account

You may tend to just store your money in a saving account. While having a regular definite interest is so relieving, believe it or not, choosing physical gold to protect your wealth is the safer option. And here is why:

Storing your riches in the bank is convenient in the short term and kind of safe from any external robberies, yet you are subjected to economic downturns like currency devaluation and inflation.

However, There’s a fixed supply of gold making the metal in demand during political and economic uncertainties, which means that gold’s value will definitely increase. This is exactly why investors tend to buy gold, at times of recessions, as a safe place to store their reaches. It also falls outside the influence of the financial system.

Moreover, Gold’s value rises with inflation along with other products and commodities. Not to mention that it has also out-performed inflation for the past decade, positioning it as a preferred alternative in terms of gains.

Gold vs Real estate

Gold vs Real Estate

Both options have been proven to be safe and profitable. But which is better among this critical period? Gold investment is simple, unlike owning a property.

On one hand, All you have to do is purchase your gold through the right, reputable channels, then you can liquidate it anytime you want. On the other hand, investing in real estate is time-consuming, and stressful since it requires constant maintenance. There is also the part where you deal with potential buyers or tenants and all the associated hustle.

Gold vs Currencies

The difference between these two options can be summed up in one sentence: Currency trading is more focused on profit and risk, while gold is focused on stability and long term gains.

Which of these Investment Options Should you Go for?

If you’re looking to guarantee a future pension or you desire to preserve the wealth you already have, gold investment is a much better option for ensuring that your savings retain their value and steadily increase in the face of uncertain economic periods.

If you wish to diversify your investment portfolio, then you don’t have to choose one over the other. You can take the risk by investing in currency, and hedge that risk by investing in gold. If the currency market decreased, then the gold market will definitely get your back, thereby minimizing the overall losses and risks.

In conclusion, while some of the other investment options may provide higher potential profits, there’s no substitute for the stable, sustainable, and convenient profit that gold offers.

Even if you aren’t looking for a secure, reliable investment, gold is a much safer bet than any other form of investment, and amidst this global ambiguity safety should be your major concern as a potential investor.

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