Gold has long been the go-to asset for investors, and the iconic element is still setting the standard in the modern age despite the myriad other options for people to pump their capital into.
There are countless reasons why everyone should have some gold in their portfolio. The precious metal is an excellent hedge against wobbly markets and inflation. On top of that, it has the potential to rise in value long into the future thanks to its scarcity. Even though options like Bitcoin are proving tempting for investors, there will always be a place for gold.
A History of Trust and Tangibility
There are many good reasons why gold has become the ultimate store of wealth for people all over the world. Over the centuries, it has established its reliable reputation, standing strong throughout a range of global events including wars and financial meltdowns. Indeed, people who have lived through events such as the Global Financial Crisis have seen firsthand how beneficial it would have been to hold gold at that time.
Despite the rise of cryptocurrencies and the increasing digitalisation of financial markets, gold remains one of the few assets with no counterparty risk. In other words, there’s no party involved in the transaction that could potentially default on payments. Some low-risk investments like government bonds don’t come with that guarantee, and there’s always the chance that a government could default on its debt.
In the modern market, there are more ways than ever for people to invest in gold, meaning that its popularity is continuing to surge. Along with owning the physical asset, investors can purchase gold ETFs or buy shares in gold-related equities.
Gold Engrained in Mainstream Culture
Part of the reason why gold is so valuable is because there’s widespread agreement about it. You don’t need any knowledge about its scarcity or the supply and demand dynamics to know that it’s a symbol of wealth. This is something that has been drilled into people through mainstream culture over the years, with various entertainment offerings featuring gold as a central theme.
Goldfinger is one of the most famous films with gold in the name, and the James Bond film’s premise focuses on a villain who wants to contaminate the gold at Fort Knox. Three Kings is another offering with the precious metal cemented in the narrative, as three soldiers set out to retrieve some stolen gold.
The iGaming industry is also packed with gold-themed titles, thanks to its association with wealth. There are various popular jackpot games that use it, such as 12 Pots of Gold Drums, City of Gold, and Big Bounty Gold.
Along with these entertainment offerings, many rich celebrities often appear in public adorned in gold, helping to reinforce the widespread belief that it’s a symbol of opulence and riches.
Gold is going nowhere, and it will continue to be the ultimate form of wealth storage for many years. The fact that it maintains performance during market volatility is one of its main strengths, and the reason why investors will always value it highly.
