Is it profitable to invest in gold?

Gold is one of the metals traditionally used to mint coins; it is used in jewelry, industry and electronics for its resistance to corrosion regal assets reviews.

The volume of gold production is estimated at about 4,500 tons per year in annual terms. It had healthy growth in the last decade, but has recently stabilized.

Today, traders often invest in silver or gold as an alternative to the classic equity markets. Before 2002, it was an activity dominated by the jewelry business, whose total demand for gold was 80%, but later the volume traded in jewelry fell to 50% due to the increase in demand for gold as an investment product in bullion. Gold, coins and ETFs.

Investing in gold in Spain is possible and can be done through CFDs, which allow us to invest in this raw material both when it rises and when it falls.

Today we can affirm that it is safe to invest in gold, doing so through regulated platforms such as IG.

The profitability of investing in gold, as in any other investment product, will depend on the way in which we manage operations and risk.

Why invest in gold?

The advantages of investing in gold in 2019 can come from the current situation of the markets. This precious metal is considered a safe haven, where investors deposit their capital when there are uncertainties in the markets. This occurs because it meets the qualities of raw materials, which can be used at any time as a means of exchange in economic transactions.

There are certain goods that are in greater demand than others because they are generally more widely used. This means that people who do not initially demand that good, do so simply for exchange purposes, which in turn causes that, in the face of doubts about the general economic situation, operating with gold is one of the most used options.

Investing in gold, according to the opinions of many traders specialized in raw materials, is a good safeguard of value, much better than fiat money (paper money). You just have to pay attention to the appreciation of gold from 1978 to 2015, which has been at a compound rate of 3.33% (now it is at a price that of 2015), while inflation in the United States has been 3, 14% (compound rate), so gold had a net return of 0.19%.

Diversified stock indices are a good option for investors who want to take low risk and are looking for a higher return than a traditional banking service can produce. However, faced with uncertainties in the markets that could lead to losses in equities, the alternative could be in the search for safe havens, and gold is one of them.