Gold

Stability And Reliability Of Gold

  • Gold provides hedge against inflation.
  • Gold provides hedge against global instability.
  • Speculate on demand growth.
  • Portfolio diversification.

Gold has been valued from ancient times. Unlike other currencies and assets, gold has always maintained its value. Gold can be easily worked with and it does not corrode. Gold has a rich ancient history and has been highly regarded for its properties. Gold has been used in jewellery from ancient times and has been considered as a status symbol. Gold price has always tended to increase with the cost of living. This provides hedge against inflation. From ancient times, gold has been the safest way to hoard wealth. Although the gold has been volatile for a short-term, it has always maintained its value on the long-term. Gold is considered to be the safest investment among all other precious metals.

When the world goes into economic crisis due to unseen causes, it gives rise to recession and decreased interest rates and thus leads into inflation. Even during such times, when the fiat currencies lose its value, gold maintains its purchasing power. Global crises such as wars, social unrest, terrorist attacks, pandemics produce fall in other commodity markets, but gold generally benefits at the expense of other assets during turbulent times. Gold is the best way to balance your investment. Thus, we here at Rich Net Funds take mining and investment into gold as a form hedging strategy. Forex trade and gold mining and trading hand in hand gives us the leverage to overcome the global economic crises. Gold has a lower correlation to many asset classes, thus it increases the stability of returns and makes it an attractive instrument to diversify. Gold provides portfolio protection in the case of economic calamities and geopolitical turmoil. Devaluation of fiat currencies is mostly associated with economic and political instability, but gold on the other hand acts stable and is mostly unlikely to be affected by such factors.

Exposure to a high-quality, growth-oriented investment, protection against economic volatility and leverage in gaining quick cash liquidity are some of the valued components of gold portfolio holdings.