Gold: Good or Bad investment
Here are some advantages and disadvantages of making gold as an investment. Advantages : 1. Liquidity . Gold can be easily converted into cash anywhere in the world. Aside from actual cash, the liquidity and universality of gold is unparalleled. 2. Holds its value . Gold tends to maintain its value over time. Economists argue that even the price of gold is not indicative of its value. That is, even if the price decreases, the underlying value of gold does not change much. 3. Hedge against inflation . Gold rises in value when inflation takes hold. Since gold is priced in U.S. dollars, any deterioration in the dollar will logically lead to a higher price of gold. As a result, during inflationary times, gold offers a much more stable investment than cash. 4. Diversification . Adding different securities to your portfolio is an essential...