Today, In a time of uncertainties people are looking for a secure investment for the long- term profitability. While the market has a lot to offer as an option but the credibility of getting profit is equally low. In such a situation, the customer quests for safe investment so that even if the market goes upside down, he is in the position to come out of it.
Why gold over currency?
Gold and currency are two different attitudes for investment in the market. Gold represents long-term reliable storage of consistent wealth whereas currency or forex trading is represented as high risk and cautious investment. Forex trading is the most volatile of the financial markets, with much of its trading in spot trades with high risks and potentially high rewards.
Gold is a unique and classic investment and over the years it has been considered as a medium for wealth preservation which is now easily tradeable through gold ETFs. Gold ETFs enable the investor to purchase gold and net the benefits of the precious metal while foregoing the challenges related to purchasing and housing physical gold. ETFs essentially act as a mutual fund for gold, with one unit of purchase representing, in most cases, 1 gram of gold. These units can be traded on the stock exchange just as you would trade a single share of a company, and transactions are generally managed in the same manner as a stock purchase.
Whereas, on the other hand, currency involves a trader making calculated investments and speculations as to the relative valuation of a pair of specific currencies. As the market is also unpredictable and volatile, there’s also no set way to do well in the forex markets. Currency values are moved by an enormous number of different factors, and there’s no way to predict them all.
Let us explore some of the features to investing in gold:
Intrinsic value: Gold, like other precious, is a scarce resource on the planet that holds the intrinsic value, meaning that there will always be somebody who wants to buy it, though not necessarily at the price you desire. Whilst physical gold can often be difficult to sell, gold ETFs are easier to negotiate for the majority of investors. Although trading currencies on the Forex market is a little bit different from trading gold, currency also has intrinsic value and is even easier to trade through the Forex marketplace than gold.
24-hour marketplace: One distinct advantage enjoyed by gold traders when they invest with Seven Capitals is access to a trading marketplace that is available 24 hours a day, 5 days a week. They can take advantage of after-hours news stories and foreign market activities to make immediate adjustments to their investment portfolio.
Risk management: Many investment professionals consider gold to be one of the most stable and reliable media on the market. Whilst gold is certainly a standard-bearer when it comes to risk mitigation and consistent, albeit modest, returns on investment.
Conclusion- Gold is generally considered to be one of the safest investments on the market today. It is a natural financial defense against market volatility, and the fact that it is a scarce resource with universal appeal makes it undeniably attractive for any investor who wants to minimize risk and maximize return on investment.