If all your investments are in the stock market, you’re doing it wrong. Historically, folks have lost their shirts in the stock market, even in times of extreme optimism. As investors scramble to get ahead of the next hot stock or investment opportunity, they often neglect to consider precious metals.
Here are seven reasons why gold is the best investment to make in 2019.
1. 2019 Is Filled with Uncertainty
World events like Brexit, U.S.-China trade disputes, and a potential economic downturn in the States point to volatility in stocks and indexes in 2019. A 2019 poll by interactive investor shows one-third of investors expect the FTSE 100 index to see either negative or flat growth this year.
Investors who are worried about the instability that may come can hedge their bets with gold. Even during times of financial stress, gold remains one of the most valued currencies around the globe.
2. Experts Are Predicting Strong Outlooks for Gold
Financial experts agree that the U.S. dollar “looks to be in retreat,” according to a 2019 report by Forbes. That means the price of gold is expected to rise, which is good news for gold investors who purchase early. Goldman Sachs and the World Gold Council both predict bullish markets for gold due to the economic impact issues like the government shutdown.
Gold beat global equities and commodities for the fourth quarter at the end of 2018, with daily trading volumes almost the same as S&P 500 companies. In January 2019, gold achieved a golden cross, meaning the 50-day moving average crossed above the 200-day moving average, which is a bullish sign for the price of gold.
3. Gold Is Stable
Do you hate watching your investments fluctuate, cringing every time the stock market value is in the red? Don’t panic, don’t punch a wall, and don’t swear off investing. Gold is one of the most stable investments you can make.
When inflation hits, gold rises in value. When the U.S. dollar deteriorates, the value of gold rises. So even in a recession, gold is a solid investment. When a bear market hits, gold tends to go up in value as investors look to stable investments. And now that we’re in our 10th year of a bull market, a bear market is due any time.
4. Gold’s Value Doesn’t Change
Even when the price of gold takes a dip, its value isn’t affected. Gold maintains value over time because it’s a commodity. There’s only a fixed scarce quantity of gold, compared to a fiat currency like the dollar which holds no inherent value. Since it’s the most sought-after precious metal for jewelry, there is always a demand for gold.
A 2017 report by Duke University found the purchasing power of gold remains largely the same over extended periods of time. So, even though you’re not going to grow your investment with gold, you’re not going to lose your investment, either. Take that, bear market!
5. Gold Is Liquid
We’re talking liquidity here, and not liquid like water. Because gold is universally valued as a form of viable currency, it can easily be converted into cash around the globe. There aren’t any commodities more valuable than gold, which is extremely rare and difficult to extract but highly prized in all types of countries.
If the country you live in experiences an economic collapse (ahem, Venezuela), having gold on hand gives you options to keep your finances strong. Since gold doesn’t decay or lose its quality or structure, it’s as solid an investment as it is a physical commodity.
6. Gold Diversifies Your Portfolio
The more you rely on one type of investment, the more risk you incur should that investment go south. Adding gold to your portfolio is a great way to diversify your investments, which lowers the overall risk. It’s like having a built-in insurance policy for your portfolio.
The closer you are to retirement or older you are, the less risk you want with your investments. Since gold prices tend to counteract stock prices, it’s a natural stabilizer for your portfolio.
7. Gold Is Real
Have you ever lost your wallet and all the cash in it? Or how about thousands of dollars in one fell swoop on the stock market? The feeling is crushing. You may have wished you had just stuffed your dollars into your mattress for safekeeping.
Gold is a tangible investment that will always be there for you. It can’t be destroyed by a natural disaster. It can’t be hacked and stolen by an identity thief. With safe storage, you’ll never lose it and can always access it when you need it.
Ready to Go After the Gold?
We say gold isn’t just the best investment of 2019 – it’s a must-have every year. Owning gold in an IRA is a way to protect your finances, no matter what the market experiences this year and beyond.