If you’re thinking about investing in gold, you’re probably wondering: “Does gold increase in value?” You want to ensure your investment will pay off, either in a few years or when you retire.
The short answer is yes, gold increases in value. It’s been proven to be a more stable investment than the stock market over longer periods of time, and it at least retains its intrinsic value if it doesn’t increase.
Let’s get into some more specifics as to why gold increases in value and therefore makes a great investment.
GOLD IS RELATIVELY STABLE DURING ECONOMIC RECESSIONS
During the 2007–2009 recession, the S&P 500 Index was down 37%, but the price of gold rose by 24%! Even though the price did drop in that timeframe, it wasn’t as drastic as the drops of stocks. For this reason, many people begin investing in gold before a predicted recession.
In addition, the value of gold isn’t affected by inflation, unlike paper currency. Gold retains its intrinsic value regardless of the economic climate, making it a much more stable investment than stocks and bonds.
GOLD’S VALUE INCREASES DURING POLITICAL INSTABILITY
When countries experience political instability—whether due to a controversial election or leader, impending or active war, tariffs, or the price of oil. When the political climate is tumultuous, many people turn to gold as a way to ensure their own wellbeing in the midst of uncertainty.
GOLD IS BEING USED IN NEW INNOVATIONS
Gold has been used throughout history for a variety of purposes—jewelry, currency, wires, and even medicine. That’s why it’s considered such a valuable and stable precious metal!
But as technology is improved, gold is being used in more brand-new innovations. The World Gold council lists many new uses for gold, including medical technologies and drugs, environmental advances, engineering, aerospace, and other new technologies.
GOLD INCREASES IN VALUE IN THE LONG-TERM
If you’re looking to make a quick buck, investing in gold might not be for you. History shows that the value of gold increases over longer periods of time than stocks and bonds. So rather than trading gold in the short-term, hold out for as long as you can to get the maximum value out of your investment.
By now, you’ve hopefully realized that gold increases in value over time, making it a great investment for those looking to diversify their portfolios or save for retirement. If you’re looking to invest in gold, contact our experts. They have over 150 years in combined experience and will be able to help you with your gold purchase.
Real Time Precious Metals Data Below