Stocks and shares have long been the main rival to gold as an investment. While the potential for sizable gains lies in the bull markets when strong economies support the markets, gold‘s popularity benefits from the bear markets, when share prices fall, often reflected by economic slowdown or even recession. During these times of uncertainty, gold protects investors and their wealth against the devaluation caused by inflation, but gold is traditionally a long-term investment. Investors may be able to see quicker profits in some cases with stocks, and it’s that allure that makes stock markets the big rival. One of the reasons stocks are so popular is that they can offer it’s investors an income in the form of a dividend. However in recent years dividend yields have continued to be suppressed and when it comes to the capital gains, gold has enjoyed far superior growth when compared with the FTSE 100 average over the past couple of decades. To help highlight the potential benefits of buying British gold coins, a gold investment of £100,000 in October 2018 would be worth over £150,000 in just 18 months to April 2020.
FTSE VOLATILITY
With the world and the economy in the state they’re in, investing in shares has become ever-riskier. With high levels of volatility and uncertainly, the balance between risk and reward in today’s economy isn’t what it has been before. Even a small return is by no means guaranteed.
GLOBAL MARKETS
It’s almost impossible to predict what will happen in the coming months and years. Brexit looks set to put a dent in industries across the UK and perhaps even Europe too, while the presence of Donald Trump in the White House has soured diplomatic relations between the world’s greatest superpower and nations around the globe.
FUTURE PRICE
Ultimately success or failure in the stock market relies on unstable forces, and many people have lost everything due to factors outside of their control. Gold sits outside these systems, a physical object that has always retained its value.
LIQUIDITY
While gold does directly provide an income, because it is in such high demand liquidation is very fast and easy to do. Invest in gold coins rather gold bars and you can liquidate in smaller or more specific amounts. Gold is a far more flexible investment than most people realise.
