The Pros and Cons of Investing in Gold

August 19, 2014

People still love gold more now than ever. While gold itself might not offer any benefits, the price has gone through the roof in recent years. Does this mean that you should invest? Many people invest in gold to get a balanced investors portfolio, but it isn’t all sunshine and rainbows. There are both pros and cons to investing in this precious metal. Read on to learn more:


Photo Author: Flickr


If you have an investment portfolio filled with bonds, cash, foreign currency, and real estate, then adding metal to it might be beneficial. This market is volatile and subject to change, but it can be controlled providing you have steady investments in your portfolio alongside.

When the economy is subjected to inflation, investment in a precious metal can be considered a safe investment. This is because it keeps it value amongst other fluctuating trends in the market. There’s even the option to vary your portfolio using paper gold, if you wish. If you can diversify your investments as much as possible, holding physical and paper gold is the key to a safe portfolio.

Many people consider gold to be a safe investment. However, it can be hard to find deposits in some cases. Many people consider gold to be a more valuable investment than plain old stocks, as they are simply a piece of paper.


Banks have been buyers of gold for many years. This market has always been volatile, but now more so than ever as the banks are concentrating on domestic currency.

As the economy doesn’t seem to be moving very quickly, investing in gold may not be necessary to keep your portfolio nice and balanced. There have been small increases in wages and people spending money, according to a recent report.

Although gold is certainly attractive, there are very little uses for it in the real world. It doesn’t really help us in any way. If you think about it another way, you could think of it as a hindrance due to the ongoing costs of storage and insurance! Remember this point before you ask yourself, ‘Should I buy Gold?’. One billionaire famously described how he would imagine aliens watching from space scratching their heads at the way we treat gold – how we guard it, yet do nothing with it. What value does it really hold then?


With everything that’s been said here, gold can still be seen as a safe investment. However, it isn’t the right thing to do for everybody. You need to weigh up the pros and cons while considering your situation to decide whether this is a good idea for you and your portfolio.

In my opinion, I’d say it’s still worth investing in gold if you want to give your investment portfolio some insurance. The pros outweigh the cons in that sense!

Do you have anything you’d like to add to his post regarding investing in gold? Please feel free to leave a comment. Thanks for reading!

Leave a Reply