Investing in Gold in 2021 – The Stable Investment

The famous ancient playwright, Aristophanes, once said that “There is no honest man — not one — that can resist the attraction of gold!” And all these years later gold still continues to glitter and shine irresistibly in our eyes.

Gold is precious to our societies. It is deeply woven into our cultures and governments and due to this, we can trust it when all other currencies and investments seem to disappear or fail.

Gold – A Cunning Investment

There are many reasons why gold is a good investment. Below we explain some of these motives.

Gold has been stable throughout human history. Paper currencies have come and gone. Inflation also leads to the euro and dollar losing value in the future.

Printing of paper currency also causes the inevitable devaluing of a currency.

However, gold continues to stay around, and it also keeps its precious high value. Investing in gold ensures that your investment stays worthy in the future. 

Currency like the euro and the US dollar are some of the strongest currencies in the world.

They are hugely important to the global economy. Although, they are powerful currencies does not mean they are completely reliable.

They can fluctuate and some possibly may even fail in the future. 

For example, the euro was only introduced less than 25 years ago.

The euro from 2021 is only worth 70% of the euro from 1999. This means if you saved 10,000 euros in cash in 1999, it is only worth 7,000 euros today.

This is due to inflation and other complexities in the EU market that affect the value of the euro. 

Gold, on the other hand, stays stable. In addition, if you invest in gold you can be confident that your savings are worth the same or more than when you invested them.

Interestingly, gold has increased 4 times in value since 1999. This means if you invested 10,000 euros worth of gold at the end of the 20th century, it is currently worth around 40,000 euros.

Gold is also known as the ‘crisis commodity’ because not only does it hold its value during financial crises, it can hold strong during geopolitical tensions and even war.

When world tensions rise, countries turn to the relative safety of gold. Other investments commonly dwindle during times of high tension in countries, however, gold has a tendency to hold strong.

How to Invest in Gold?

As gold has been a pillar of the global economy, there are numerous ways you can invest in gold.

And now with modern technology reaching the masses, there are even more ways to invest in this precious metal.

The safest way to do it is to buy physical gold in bullion or in coins. Bullions are the thick gold blocks you may see in the movies safely stored deep in the vaults of a bank.

Coins and bullions are safe because they usually have a serial number etched into them, so gold owners can feel more secure investing in physical gold. 

Bullions can be a difficult investment however as you cannot divide up bullion when you decide to sell 20% of your gold. Coins can be helpful for this.

The other added benefit of having coins is that it can be relatively easy to find a reputable dealer to help you buy gold coins.

A more modern approach to investing in gold is gold-based exchange-traded funds (ETFs).

Due to technology and trading apps and websites, ETFs are much easier to get involved with. They are also a better option for smaller investors.

For example, you may want to invest in gold but you may not want to invest so much as to buy an entire gold bar. A 1 kg bar of gold can cost around 50,00 euros in today’s market.

ETFs allow investors to invest in gold similar to stocks. You can buy shares and each share is worth a particular weight in gold.

You can then easily sell percentages of your shares without the worry of dividing the physical gold.

Another great benefit of investing in gold-based ETFs is that the expenses are usually a lot lower than other types of investments.

If ETFs are not for you, then you can go straight to the source and buy stocks and support the gold mining companies.

Investing in mining companies can be an extremely profitable place to invest your money.

However, it will take some patience and deep investigation to understand which gold mining companies you want to invest in.

Is It a Good Time to Invest in Gold?

Like all investments, there are good and bad periods to invest in gold. However, as history tells us, gold is a stable investment and even when it is not performing so well, it can still be considered one of the safest investments.

This is because even in fragile times of economic recessions, gold regains its value quickly. 

But let’s look more closely at gold in 2021. This year gold has been underperforming.

Nonetheless, it would be unlike gold to continue to underperform. And eventually, it should start increasing in its usual stable manner.

To Conclude

Gold due to its scarcity and importance in the economy throughout history, gold is a reliable investment.

Currently, gold is not making any gains. Despite that fact, gold always stays strong even in times of economic turmoil.

The shiny metal could be worth investing in. Especially now with apps and websites, it is easier to find a way to buy gold in a manner that suits you.

It can be bought through ETFs, stocks or even in physical gold bullions and coins.

Investing in Gold in 2021 – The Stable Investment

The famous ancient playwright, Aristophanes, once said that “There is no honest man — not one — that can resist the attraction of gold!” And all these years later gold still continues to glitter and shine irresistibly in our eyes.

Gold is precious to our societies. Even in economies relying on unbacked paper currency, gold and other precious metals are still more than an ancient indicator of wealth.

It is deeply woven into our cultures and governments and due to this, we can rely on it even when all other currencies and investments seem to disappear, dwindle or fail.