If you’re a millennial, chances are that you’re used to making things happen at the touch of a button, whether that’s finding a partner or getting a taxi. Investing your money can seem cumbersome and complex by comparison – and may also seem pointless if you’re saving for your first house or paying off a student loan. But if you’re looking for a way to add value to your savings without those pain points, gold is a great choice. Here’s why.
Gold is real.
The cryptocurrency boom and bubble made some fortunes, yes – but millions also lost a lot of money. Contrast these here-today-gone-tomorrow currencies with gold’s long history value. It was first used as a currency in 550BC.
People have put their trust in gold ever since for a reason: it’s a safe haven investment. When you buy gold, you’re buying a tangible asset.
Gold is (now) simple to buy and sell quickly if you need to.
Many funds which offer a reasonable rate of interest also require you to lock your money away for long periods. That’s just not practical if you’re constantly on the move, you’re freelance, or you run your own business.
In uncertain times, you need to know that you can have easy access to your savings. Apps like Goldex give you that touch-of-a-button convenience, allowing you to buy and sell your gold whenever you like.
Gold is a great alternative to low or zero-interest savings accounts.
It used to be that you’d put money into a personal savings account, and it would earn you a decent amount of interest – but those days are long gone. Interest rates have flatlined, but inflation does not.
A recent report from Gatehouse Bank found that the average UK saver who relied on easy access bank accounts in 2018 lost around £500 in real terms because inflation outstripped interest rates. That means you’ve got to find different ways of making your money work for you.
Gold has value in the long term.
Pension provision is increasingly uncertain as governments struggle with how to fund them 40 years down the line. That’s not news to millennials. According to a recent report from financial planners GPFM, 40% of 30-40-year-olds believe it is ‘somewhat’ or ‘very’ unlikely the state pension will exist in 2050.
No matter how heavy your financial commitments are, it’s always worth putting something aside for the future, however small it might seem – and gold is a great long-term investment. As John Reade, chief market strategist and head of research at the World Gold Council, told Kitco News: “Millennials are going to be working and investing for a long time, so you need to think about more than just the short term.”
Gold is an essential part of a diverse portfolio.
Of course, it’s never wise to put all your eggs in one basket. Savvy investors will always spread their risks across a wide variety of assets – and gold can have an important role in that portfolio. Unlike shares, gold doesn’t plunge in times of uncertainty.
In these unpredictable times, everyone needs a bit of gold in their investment plan, as MoneyWeek’s executive editor John Stepek has written. “It’s insurance. It’s the asset that goes up when most things are going down.”
Start investing in gold and create your own personal storage of wealth, download Goldex today.
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Important disclaimer: this document is not an official research report and the views expressed in it are those of the authors. The authors are not registered research analysts and there is no assurance the trends mentioned will continue or that the forecasts discussed will be realised. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000, therefore, this does not give rise to rights to claim compensation under the Financial Services Compensation Scheme.