Have you considered buying gold not just as a hobby or a splurge, but also as an investment? Gold is beautiful and can be fun to indulge in, but investing in gold can also be a smart move. Here’s everything you need to know about why and when to invest in gold.
Why Should I Invest in Gold?
Gold is an investment you can see and feel, which can make it seem more substantial than other methods of investment. Here are a few reasons why you should invest in gold:
- Gold can behave as a hedge fund. In investment terminology, a hedge fund is an investment that balances out losses in other categories. Gold tends to go up in value when other investments go down, making it an ideal way to round out your investment portfolio.
- Gold can protect you from catastrophe. Because gold goes up in value when the rest of the market goes down, investing in gold can provide security in the event of a market crash or collapse.
- Gold is a worthwhile investment in its own right. No matter what the state of the global economy, gold always has value. We can see this looking back thousands of years — it’s always been desired and thus valuable. It’s also a much more flexible investment if you need cash for gold, since you can either use it as collateral for a loan or sell it outright.
Historical Trends in the Value of Gold
Gold has been used as currency for thousands of years. Although the U.S. stopped using it to back American money in 1971, gold has still continued to increase in value over the years. If you look at a graph showing the value of gold since the 1970s, you’ll see that it has been on a fairly steady upward trend since 1971. Some years have decreased in value, but overall the value of gold has risen considerably, from $44.60 per ounce in 1971 to over $1,200 per ounce in 2018.
When to Invest in Gold
Like any investment, the value of gold fluctuates up and down throughout the year as a result of various factors. In general, though, the price of gold is lowest at the very beginning of the year, immediately following the holidays (no surprises there), and remains fairly low in the spring and early summer. Gold reaches its highest price in the fall. That makes the second quarter an excellent time for a gold buyer to invest.
How to Invest in Gold Today
Whether you want to buy gold as an investment, or it’s time to sell gold and cash in on your investment, Alma School Pawn can help! We recognize that our customers are the lifeblood of our business, so we make sure our prices are always fair, for buyers and sellers alike. Visit our store in Mesa, AZ to learn more from our gold experts!