4 Good Reasons Why You Should Own Gold!

Throughout the centuries, people have continued to hold gold for various reasons. The most common use case back then was for societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal we fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times. Below are four simple and practical reasons why you should own some gold today.

Deflation-Resistant

Deflation is defined as when the price of some assets or fiat decrease or when some business activity slows, thus the economy is burdened by excessive debt. The biggest deflation that happens globally before was the Great Depression in the 1930s.

There is some big depression although a small degree of deflation occurred following the 2008 financial crisis in some continents or the Covid-19 pandemic in 2019.

Basically, when the Depression happens, the relative purchasing power of gold will soar while the other prices such as fiat or other assets will drop sharply. This is because people chose to convert their wealth to the safest place and that was gold at the time.

Diversification

Gold was also offering a diversification investments option that is not closely correlated to one another; gold itself basically had a negative correlation to stocks and other financial instruments.

Properly diversified investors will combine gold, stocks and bonds to make a solid diversification portfolio where it'll reduce the overall volatility and risk.

Today, we also can combine it with the cryptocurrency on the portfolio to access the huge crypto market and simultaneously access the gold global market through the digital gold platform, Where it's much safer and minimize the risk.

Demand

In the previous years, demand for gold has increased and in many of these countries, gold has intertwined into the culture. For example, In China, where gold bars are a traditional form of saving other things, the demand for gold has increased.

On the other side, India is the second-largest gold consumer nation in the world. Gold has been used for jewellery the Indian wedding season in October is traditionally the time of the year that sees the highest global demand for gold.

Demand for gold was also growing among investors. Many are beginning to see gold as a new investment class option into which funds should be allocated.

Inflation Hedge

Gold has been historically an excellent hedge against inflation, it's because the price tends to rise when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the other market plunge during the high-inflation years.

This happened because when the fiat currency loses its purchasing power when inflation happens, gold tends to be priced in those currency units and thus it's arises along with everything else.

Moreover, gold itself was seen as a good store of value so everyone may be encouraged to buy gold when they believe that their local currency is losing its value.

Access the Gold and Crypto Market Simultaneously

The Internet offers various an new innovations on the global market and blockchain technology itself, it's becoming one of them where it's a new technology that offers a new decentralized mechanism where it'll ensure transparency to everyone.

Today, with cryptocurrency you can buy tokenized gold assets through the Digital Gold marketplace platform and simultaneously access the huge crypto market. Blockchain technology itself that is used in the ecosystem will ensure cheaper transactions, faster processes and a more transparent mechanism. 

Digital Gold team was also offering tons of unique features such as real-time gold and crypto price chart, 24/7 support, low spread and high liquidity market, Besides Digital Gold token was representing real physical gold that was stored on the Bullionstar vault.

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