You may have heard that gold is a great way to diversify your portfolio and protect yourself from inflation. But what exactly are the benefits of investing in gold?
First, gold's value has been rising for over five years, which means it has outperformed many other investment options during this time period.
Second, because it does not correlate well with any particular market index, including stocks and bonds, it can help to stabilize an investor's portfolio by providing an alternative investment option during periods of financial turmoil.
Third, there are some tax advantages associated with owning gold.
And finally, you don't need as much money to invest in gold as you would if you were investing in individual stocks or funds. For example, if you had $500,000 to invest in the stock market, then your typical purchase might be around 100 shares of company XYZ.
However, you could buy a one-ounce gold coin worth $500 for only $2,000! The average purchase price on eBay is typically less than $400 per ounce. If you decide to buy bullion coins instead of jewelry, bars, or rounds (all types of gold products), these products offer lower premiums over spot prices compared to coins that are minted by national governments like Canada and South Africa. There are even services available online where investors can take delivery of their metal without paying storage fees.