Despite the reassuring reputation that precious metals has put up as a store of value for thousands of years, they also have not put up a pleasing record as a viable short term investment option. The reason why Gold as a precious metal is regarded as a store of value is because unlike Bitcoin, the price of Gold rarely makes any significant moves however even if it does make a move, it never moves aggressively down making investors lose value instead it moves up more often making it a proper investment option. Whenever it moves down in price may be as a result of natural price correction which does not last longer or in a response to major market events.
Gold is a store of value because you can invest in it and not lose the value of your investment instead gaining, This is because of the physical scarcity that it contains and basic economics dictates that whenever the asset is rare then it is likely going to be more expensive as a result of supply and demand. This means that for those with large chunks of money sitting on the sidelines it can be a viable investment option but probably not the best for those with little amounts looking to double or triple their money in the short term. Although those with little money could opt for Gold futures contracts or derivatives. Believe it or not nobody wants to wait a much longer time for little rewards these days so for those looking to make a quick buck should look for volatile and riskier assets although the risk of losing your money is high, the rewards are also high if you do make it.
Although the precious metal rallied aggressively up in response to the global pandemic and uncertainty in the traditional markets not forgetting the huge inflation posed by the traditional currencies, buying Gold for the long term has also proven to be rewarding especially in these times as hyper inflation is looming for the markets.
