Why Invest in Gold?
Investing in gold offers numerous benefits:
Wealth Preservation: Gold is often used to protect purchasing power. While currencies may lose value due to inflation, gold tends to retain its worth. For example, the value of gold has increased significantly over the past decades, offering better long-term returns compared to cash.
Portfolio Diversification: Gold has a low correlation with stocks and bonds, meaning it can reduce risk in a diversified investment portfolio. During economic downturns, gold prices often rise, acting as a safety net.
Types of Gold Investments
Gold offers multiple investment options, catering to different investor needs:
Physical Gold:
Gold Coins: Popular among collectors and investors, gold coins often carry historical significance. Coins like the Canadian Gold Maple Leaf are exempt from capital gains tax in Canada, making them a practical choice.
Gold Bars: Available in various sizes, gold bars are ideal for larger investments. They offer lower premiums compared to coins.
Digital Gold:
Exchange Traded Commodities (ETCs): ETCs provide exposure to gold prices without physical ownership. They are traded like stocks on financial markets.
DigiGold: Platforms like The Royal Mint offer fractional gold ownership, making gold investments accessible with minimal capital.
Gold Jewelry:
Investing in gold jewelry serves a dual purpose — a wearable asset that also retains or grows in value over time. Custom-made jewelry pieces offer unique investment opportunities.