If you were to ask a handful of advisors what the safest investment instrument is, the majority of them would probably recommend gold. Despite the fact that the annual average price of gold has been continually rising for more than ten years (a statistical feat that few commodities have accomplished) for some reason people are still not sure whether it would be wise for them to purchase some gold holdings of their own. If you’re still on the fence about gold buying, here are three reasons to buy gold in 2013:
Earn a Profit in the Long-Term
Many investors are weary about using gold as an investment instrument because they’re not confident that its value will continue to rise. After all, how much higher could the prices go, and could the increase be enough to generate a sizable profit? While there are plenty of more lucrative ways to invest a large sum of cash, few are more reliable than gold investments. With the majority of analysts predicting a gold price peak within the next 5 years it would be a wise decision to convert some of your currency to gold as soon as possible. The sooner you buy gold, the more of a profit you’ll earn when you decide to sell it.
Protect your Assets from Depreciation in the Short-Term
Converting some of your fiat currency (i.e. – U.S. dollars) into gold is a good way to protect your assets from depreciating value. The value of the dollar has been in steady decline for about 100 years, and in all probability this trend will continue until a fundamental change is made to the monetary system. However, throughout history the value of gold has risen when the value of other currency has fallen. Instead of storing your liquidity in a form of currency that is almost guaranteed to decline in value, consider the benefits of securing the worth of your assets by backing them with the reliability of gold.
Look Down from the Peak
As the dollar continues to bottom out and gold prices continue to rise, make sure you’re part of the group of investors who will be victoriously looking down from the peak instead of staring up at it wishing they would have capitalized. Although there is no unanimous consensus regarding when the price of gold will peak, most experts agree that it will happen at some point between 2013 and 2020.