Seven ways in which gold can stabilise the value of your portfolio – watch this video by Physical Gold to find out how

Economic uncertainty is now the norm in the world that we live in. The stability of all asset classes depends on the fabric of the economy. When the bottom drops out, it all tumbles down like a house of cards. Not so long ago, we witnessed this phenomenon in 2008. The sub-prime American housing market crash that triggered the demise of Lehman Bros quickly escalated into a global recession that swallowed up the value of investments made over the years. More than ever, you need gold at times like this, according to Daniel Fisher, CEO of Physical Gold.

 

In a fascinating video that is an invaluable tool of financial advice for investors, he explains how gold provides essential stability, liquidity and balance to your portfolio, protecting you from the vagaries of a global economic meltdown. Infact, when all asset classes are headed downward, gold rises. Even during times when there is no economic crisis, forces like inflation, and currency devaluation are continuously chipping away the value of your investments. Rising inflation is a negative force that is present across countries as governments simply print more paper money to maintain supply. However, this decreases the purchasing power within the economy, devaluing assets.

 

Added to this, currency devaluation is a fallout of political uncertainty, coupled with government debt. Daniel explains how gold can help protect against all these forces and provide insurance to your portfolio. There are other advantages to investing in gold as well. Liquidity and tax efficiency at key considerations for most investors who put their money in gold. Unlike other asset classes like property, where the entire asset needs to be liquidated in one go, gold provides flexibility. Most importantly, adding gold to your portfolio reduces the risk of volatility, since gold is a steady, safe asset class.

 

On the tax efficiency front, gold is a winner. Investment-grade gold reduces your tax bill by 20%, as it is VAT free. Legal tender gold coins are also CGT free, which other asset classes are not. The video explains how seven areas of consideration need to be factored in when making investments and how gold can value add to all of these. Watching this video will ensure that you become aware of these considerations when making an investment.

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Uploaded on October 14, 2019