THE’gold is defined “Good refuge”namely an investment that maintains its value in the Moments of uncertainty economic and geopolitical, even increasing it, sometimes, while the value of other types of investment descended. In fact, compared to other financial instruments, it is not linked to political or monetary decisions and does not depend on the economic health of a country: gold, therefore, is in all respects a realrecognized and exchanged globally, which could give some stability in the event of wars, inflation or collapses of the markets, economic or currency crises.
The advantages of investing in gold
Gold is the Symbol par excellence of wealth Since ancient times and, unlike other financial investment tools, it is a real asset as a precious metal.
Among its main advantages, there is certainly the possibility of protect the heritage from inflation: When the purchasing power of the coin is reduced, gold tends to maintain its value. In addition, the request of gold takes place a global level: it is used in creating jewelry, in technological industry, comes exchanged all over the world and preserved as a reserve by central banks.
The Auree reserves serve to Ensure stability of the financial system and the single currency: the Bank of Italy It is among the first four gold owners in the world, after the Federal Reserve of the United States, the Bundesbank of Germany and the International Monetary Fund. Currently, the ECB owns 141 tons of gold And of these the Bank of Italy has it 2 452 tons of gold, of which most are bars (95 493), and a smaller part is made up of coins.
In moments of economic uncertainty or instability of the financial markets, investors often decided to move part of their capital to gold: for example during the 2008 crisis, while the S&P 500 index collapsed more than 37%, the gold price recorded an increase of about 5%, this of his shield function It allowed many investors to limit the losses they were suffering.
Disadvantages in investing in gold
However, unlike other financial instruments, gold does not generate income, not mature interest (as happens to an obligation) nor distributes dividends (as a action does); Furthermore, being a material good, a safe place is necessary where to keep it which involves expenses, as for the possession of the safety boxes, also given physical risk to be robbed and completely lose possession; Finally, among the disadvantages/risks it must be evaluated that the gold price varies daily And therefore it undergoes fluctuations of its value especially in the short term. For these reasons It is not a type of investment suitable for everyonein particular to those who need to have periodic returns.
Gold represents a useful tool to protect the assets, mainly in times of crisis, and is therefore considered a “refuge asset”, but if its strength lies in stability, it could sin in other aspects, as in profitability. As always, the guideline to follow to make the best of their savings is the diversification And it is also important to evaluate well with experts in the sector before inserting the investment in gold in your financial planning: it is not said that it is in line with your goals.
