Here are some of the most significant advantages why you should trade on Gold.
- Diversification:Gold is a safe haven asset that is often used as a diversification tool in an investment portfolio. This is because gold has low correlation with other assets such as stocks and bonds. By including gold in your portfolio, you can reduce the overall risk and volatility of your portfolio.
- Hedge Against Inflation:Gold is a hedge against inflation. As the inflation rate rises, the value of currencies decreases, while the value of gold usually rises. This is because gold is a finite resource, and its supply is limited. Therefore, gold tends to hold its value overtime, making it a reliable hedge against inflation.
- Liquidity:Gold is one of the most liquid assets in the world. It can be bought and sold easily and there is always a market for gold. This makes it easy to enter and exit trades quickly, which is important in the fast paced world of trading.
- Global demand: Gold is in high demand all over the world, making it a truly global asset. Tjis demand is driven by several factors, including jewely production, industrial uses and investment demand. This mean that gold is not subject to the same economic and political risks as other assets that are tied to specific regions.
Historical performance: Gold has a long history of performing well as an investment over the last 50 years the price of gold has increased by an average of 7 % per year this is comparable to the long term average returns of the stock market. Golds historical performance makes it and attractive investment for those looking to build wealth over the long term.