Gold is an important investment model for all investors - this and similar statements can always be found in the specialist media. So often that many savers invest without any hesitation in bars, coins and other products based on the precious metal. But why actually? How important is a gold investment really for investors? It is true that bank advisors indeed recommend gold investments to almost every person seeking advice. However, there are differences in the extent to which gold should belong to the portfolio. The statements on this point fluctuate between five and 20 percent of the budget. However, analysts largely agree on the reasons for the recommendations. Gold is and remains the proverbially safe haven.

Precious metal largely unaffected by inflation

In this area, investors are also protected against dramatic losses - even if the inflation rate rises and the stock markets worldwide collapse due to the crisis. At least that's the theory. Because, of course, the gold market is not entirely immune to downward trends, as the past few years have shown. Due to the limited resources and the high demand from the industry (computers, mobile phones, jewelry, etc.), however, the rising gold price in UK can still be expected, according to most experts, the temporary drop in prices often more as a kind of market adjustment than as a real one understand new trend down.

Gold administration works without major problems and costs

On the other hand, gold is not only important for ordinary investors as an investment. For the banking industry, precious metals are an indispensable part of their foreign exchange reserves. Gold is used to hedge intervention obligations that inevitably exist for the institutes. At this point, too, gold is characterized by its security against crises. The same applies to the subject of inflation security. Banks and investors rely on gold investments in order to achieve better diversification of their investment risk (diversification). In this way, stable performance in this area of the portfolio can compensate for some loss in other segments.

Another advantage of the precious metal can be seen in the fact that gold is accepted as currency and means of payment irrespective of country currency around the world. Another advantage of gold investments is that transport and storage are comparatively easy to manage. Investors who value security would do well to invest at least part of their capital in gold.

Read Also: How do you recognize gold?