Knowing this was the case, London gold traders Physical Gold recently published an infographic on the topic. We spoke with Daniel Fisher the managing director of Physical Gold about their latest infographic “The benefits of gold”.
We asked Daniel “Why do you think this is such an important topic for an infographic?”
Daniel replied “Many people like gold investment, particularly when they buy coins. We have realised over the years though that many gold investors don’t really realise the full benefits of what they are buying. We decided to summarise all of these into one handy infographic!”
The infographic is published at:
The infographic starts with a section about the simplicity of gold ownership and trading. Daniel said:” Gold is both easy to buy and sell and from our experience much easier than owners initially think.” This is certainly true, as the infographic says gold is a global currency and highly collectible in its coin format.
The next section is understood by most of the population and covers the low volatility of gold, particularly in the medium-long term. This is due to the scarcity of gold, its finite supply and desirability with owners.
Especially important for investors the next section is “part of a balanced investment portfolio”. Speaking on this topic Daniel said, “We would strongly recommend anybody with an investment portfolio to keep between 5-20% of their overall wealth in gold. The exact amount depends on circumstances and level of desired risk. In the medium-long term, gold has a strong track record of performance and is perceived as a low-risk safe investment. This section was particularly important in the infographic and we covered many reasons why gold has value in a portfolio.” Content here includes the strength of gold in economic turbulence, as a hedge against currency fluctuations, to spread investment risk and also due to its strong liquidity attributes.
The lack of counterparty risks is covered next. Physical gold securely stored has no counterparty risk, unlike other forms of investments, which do. Risks such as company fraud and mergers/acquisitions reducing share value can all erode investments. At a macro-economic level, the economy is a risk as are banking system collapses and stock market crashes. “In times like these, physical gold performs well. When other investments are uncertain, governments and investors move to gold as a safe and secure way of preserving their wealth.” Says Daniel.
Although this varies from country to country, there are numerous tax advantages of gold in place, which can be an attractive reason to invest in gold. With a UK-emphasis this infographic discusses tax advantages in the UK such as reducing the burden of inheritance tax, capital gains tax, VAT and pensions related tax charges. It’s best to check in your own country to see if there are tax advantages, which apply locally.
The liquidity of gold is featured next. Liquidity is the potential to quickly convert physical gold into cash. Daniel said “Liquidity is often under-valued by investors. None of us know what lies ahead and in some circumstances the ability to convert gold into cash can’t be underestimated. Gold is easy to sell, has a globally published spot price and infact can be viewed as a type of currency, the ultimate measure of liquidity.”
Although not strictly related to investments an additional benefit of gold ownership are its health benefits. Gold has a long track-record for its health benefits, which include treating certain cancers, in dentistry, as an anti-inflammatory aid and also for certain mental health conditions. The medical industry is creating an increased demand for gold in its salts and leaf state, which will ultimately drive the gold price in a positive direction.
To appreciate the infographic fully click this link and decide for yourself! It is brimming with a wide-variety of benefits relating to gold and is an interesting read for gold owners everywhere.
About Physical Gold
Established in 2008 Physical Gold are leading gold and silver dealers based in London, UK. Their team of professionals provide a wide-range of precious metal markets investment opportunities, which offer low risk to the investor. The business can also provide tax-efficient solutions for certain products too. With experienced gold professionals, Physical Gold has drawn on many years of experience to produce this infographic.
Physical Gold Contact details:
Company website: https://www.physicalgold.com
Registered Office: 25 Old Broad St, London EC2N 1HN
Telephone: UK +44 (0)020 7060 9992
Contact: Daniel Fisher, Managing Director
Organisation: Physical Gold Ltd
- Contact Name:
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