Wednesday July 24, 2024

Gold 'best investment' option for beginners in 2024

Regardless of the amount of money you have, you should still diversify your portfolio and invest in different mediums

By Web Desk
January 29, 2024
Image of bars of gold. — Pixabay
Image of bars of gold. — Pixabay

Looking to invest but don't know where to go. Fret not, as you've arrived at the right place.

Regardless of the amount of money you have, diversifying your portfolio and investing in different mediums is a great option, GOBankingRates reported.

Here are some of the reasons why gold is a very good investment option for beginners:

  • Doesn’t get affected by market trends: Gold tends to move independently of stocks and other types of investments and thus gets less affected by market trends or fluctuations, making it a safer option as compared to others.
  • It works independently of the dollar, so even when the dollar or other currencies fluctuate, gold can still mitigate its impact by retaining its value.
  • Inflation hedge: Gold has historically been an excellent hedge against inflation because its price tends to rise when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plunge during high-inflation years.
  • Increasing demand: In many of these countries, gold is an integral part of the culture. In China, where gold bars are a traditional form of saving, the demand for gold has remained steadfast. The Indian wedding season in October is traditionally the time of the year that fuels the highest global demand for gold.

How should you invest in gold?

Gold can be bought in many forms: bullion, coins, bars, or jewellery. Many people prefer buying gold jewellery so that it can be worn but also secure it as an investment.

Other possibilities include investing in a gold exchange-traded fund (ETF) or buying shares in mining companies that engage in the extraction and production of precious metals.