Buying gold has always been viewed as a sign of prosperity. Every human civilisation, over 5,000 years of history, has valued gold coins and gold bars along with gold jewellery. Arguably, gold is the most widely recognized precious metal. Its quick and easy to buy gold in Hong Kong
Lack of trust in the global financial system
Since the global economic crisis in 2008, ownership of gold bullion and physical gold has increased in popularity and is viewed as being an essential part of an investment portfolio. It provides wealth preservation along with growth and has the added advantage of being unlinked to any major currency or stock.
Why buy gold?
Gold traditionally performs well during periods of uncertainty and its purchasing power remains consistent, and indeed increases, over long spans of time. Many view gold as the de-facto “real” currency with its value determined by its intrinsic “worth” rather than a central bank or government.
Why buy physical gold?
Many financial advisors are keen to include “paper gold” in portfolios. However, ETFs and similar products do not share the fundamental properties that guarantee gold’s value. Only real physical gold is a finite resource with a clear and increasing demand. ETFs are ultimately, just paper.
Gold bullion has zero counterparty risk unlike stocks and bonds, and is essentially a legal tender in all but name as it is an asset accepted worldwide. It is particularly effective as a long term investment.
Gold protects against uncertainty
Few would argue that global financial markets are experiencing significant uncertainty. There are US-China trade tensions, political turmoil in Hong Kong, the lingering problems over Brexit and tensions between Iran and the West. All of these factors place strain on global stock markets.
In your investment portfolio, you should hold between 5-10% in physical gold. You may choose bullion bars or coins, or investment in other precious metals. This holding will act as a safe haven, serve as a hedge and provide wealth protection for the long term.
If you don’t own physical gold yet, now is the time to reconsider.
About the author:
Joshua Rotbart (LLM, MBA) is a Founding Partner at J. Rotbart & Co., a world renowned expert in providing solutions for clients wishing to ship, store and purchase physical precious metals. Joshua works with family offices, independent financial advisors and high net worth individuals to discreetly and sensitively provide tailored solutions for their needs.