Investing in gold is profitable

Gold is one of the oldest instruments for investing free cash. The reason for this is simple: despite temporary downturns and rebounds, the price of the precious metal has been rising throughout human history. Once troubled times come, it turns out that physical gold stocks are the least subject to the risk of depreciation. And now investors have again paid attention to this noble metal. Since September 2022, the value of physical gold has increased by about 20%.

Despite the fact that skeptics point out that there is no direct profit from holding gold as a metal (physical gold), demand for it is growing. Stocks and bonds are able to generate direct income: by keeping the asset in the form of securities, the investor receives a percentage profit. Profits accumulated in gold bars or coins can only be realized by selling the metal. 

Theoretically, investments in cryptocurrencies are even more attractive. However, this investment tool is extremely risky. Control over cryptocurrencies is constantly tightened, there is even a risk of a complete ban on cryptocurrencies. Therefore, Nalog.nl recommends more traditional investments, including physical gold.

The profitability of investments in gold depends on macroeconomic indicators, primarily on interest rates on deposits. In a period when rates were balanced at zero and even went negative, investments in precious metals were undoubtedly profitable. But even now, when rates are rising, this investment tool remains attractive. The reason is the turbulence in the investment market, caused by the influence of many factors that are not fully defined. 

The most global such factor is the war unleashed by Russia in Ukraine. No one can reliably calculate how this or that scenario will affect the world economy and the exchange rate of the leading currencies.

Investors in gold rightly assume that it will not become cheaper after the war, which means that gold investments will help preserve capital.

On March 31, 2023, a troy ounce (31,1 g) of gold was worth €1820,25, while on January 25 it was worth €1770,62. You can see the current price of precious metals at this link.

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