People who choose gold as an investment include one or more of the following characteristics:

Asset allocation consultant

In 1970s, gold was a very popular investment and asset allocation model. This gold craze began to fade in the 1980s, and has been touted by some asset allocation and financial advisers in recent years.

Hidden assets

Because gold is a very soft metal, even if the gold bar is engraved with a unique code, it can be easily removed with a hammer and chisel. If gold itself has no record of its holders, it will become an untraceable asset, and the high density of gold enables these people to hide huge assets in a small space and easily escape the tracking of their wealth by their quotas, families, tax bureaus and creditors. Without worrying about the corrosion and asset depreciation caused by time.

central bank

In the past few years, most central banks have played the role of major gold traders. In addition to choosing the US dollar as a reserve unit, investing in gold as a reserve can ensure the liquidity that can be used quickly in times of crisis. Dollar-based value is maintained by the U.S. government and influenced by dollar inflation. Once the dollar crisis or foreign exchange control breaks out, the dollar may face devaluation or even devaluation. Adopting this diversified portfolio can reduce risks more than simply using dollars as reserves.

Currency investor

Since gold is priced in dollars, currency investors will buy gold when predicting the decline of the dollar, because they think that gold will maintain a certain level against other currencies, thus ensuring that assets will not be dragged down by the decline of the dollar.

finance system

Banks and financial institutions invest in gold to reduce the potential loss risk of gold-related products such as gold coupons and futures contracts that they have declared.

Golden fan

Traditionally, gold fans have been afraid of another Great Depression. They believe that only gold is a reliable asset forever.

Hoarder

Some investors maintain their liquid assets by holding large amounts of gold as reserves and investments for a long time. They also believe that holding gold for a long time can preserve value.

free

Liberals tend to use privately issued digital gold coins instead of legal tender because they lack confidence in some reserve systems or monetary policies.

Oil investor

Some market participants believe that there is an interaction between the price of fuel and the price of gold. The rule is that one ounce of gold is equal to the price of 10 barrel of fuel. Part of the reason is that the process of mining gold consumes a lot of energy, which will increase the mining cost per ounce of gold. Part of the reason is that they are all necessities of daily life and are often affected by the same economic stimulus. When investors predict the rise of fuel prices, buying gold is one of the investment modes.

investor

Investors try to make a profit by predicting the price of gold. Some people think that the macro-economy will affect the market demand for gold, while others think that it is up to individuals to capture the market trend to predict the future price trend.

Gold investment can not only create huge investment profit opportunities, but also fight inflation, which is one of its advantages. In recent decades, the currency shrinkage caused by inflation is very serious. When it shrinks to a certain extent, paper money will be like waste paper. The preservation of gold makes it avoid the danger of erosion in inflation. You can imagine the difference between buying a suite ten years ago and buying one now. Similarly, if you choose to buy gold now, gold bars will still have the same purchasing power as they do now when paper money depreciates ten years later.

Another advantage of gold investment is that its market has no time limit. Hongkong, London, new york and other markets have formed a 24-hour uninterrupted gold trading market, and investors can enter the market at any time. On the other hand, the world open market of gold is not closed, which makes the investment in the gold market more secure, and there is no need to worry about not being able to enter the market in an emergency.

What is more reassuring is that the gold market is very transparent and fair. The stock market in any region may be manipulated artificially, but the gold market is a global capital market, and all central banks are involved. In reality, no consortium has the strength to manipulate the gold market, so there is no need to worry about the so-called shady gold quotation.

In addition, the transfer of property rights of gold is very convenient. Compared with industrial investment, such as real estate, gold investment is easy to transfer without complicated transfer procedures. After buying gold, it can be freely transferred as a gift, without any obstacles similar to the registration system, and it can also be converted into cash at any time.