Investing in gold - is it profitable?

According to the policy of portfolio diversification, gold is considered one of the most reliable forms of investment. The savings we hold in various investment forms are subject to market fluctuations to varying degrees. The typical middle-class person in the United States invests about 70% of their savings in stocks, bonds and real estate, about 10% in the stock market game, and as much as 20% of their savings in gold, i.e. the basis of its financial resources.

However, there is no tradition of investing in gold in Poland for three reasons:

● The Poles have little gold, mostly jewelry;

● nowhere to buy pure gold at reasonable prices;

● no information or advertising on the investment value of gold.

So is it worth investing in gold?

Gold prices are constantly rising, so in Poland you should invest about 10-20% of your savings in pure gold. In support of this thesis, the rise in gold prices over the past four years should be cited. In 2001, gold was worth about $270 an ounce, in 2003 it was about $370 an ounce, and now it's about $430 an ounce. Gold market analysts say the price of 2005 dollars per ounce could be exceeded at the end of the year 500.

According to Małgorzata Mokobodzka, analyst at J&T Diamond Syndicate SC, there are several important reasons to invest in gold: 

1) unlike paper money gold does not depend on fluctuations in exchange rates and inflation;

2) gold is the universal currency, the only global currency in the world;

3) the cost of gold is constantly growing due to the increasing demand for this precious metal from modern technologies;

4) gold is easy to hide, it is not destroyed by natural disasters, unlike paper money;

5) gold is always a real value that ensures financial survival during economic crises or armed conflicts;

6) gold is a real and real investment in the form of gold, and not a virtual profit promised by financial institutions;

7) deposits of the world's largest economic powers are based on gold parity, the reserves of which are stored in vaults;

8) gold is an investment that does not require tax;

9) gold is the basis of all investments that allow you to calmly look into the future;

10) gold is the easiest way to pass on family wealth from generation to generation without paying tax on donations.

Thus, gold is transnational and timeless, and investing in gold is always smart. 

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