Greetings to all the readers here,

I was talking to one of my friends recently and he told me about the idea of investment in gold and I was like why should we invest in gold when we have the option of Bitcoin, Ethereum, and other cryptocurrencies. I mean what is the point of investment in gold and that is when he told me few things that helped me understand why gold can be one of the safest and best long term option for the future.

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Now, if you are someone who has a lot of money, or even if you are someone who is not having a lot of money, it is always good to diversify your money into different assets. And I think when it comes to diversifying our money into different assets, Among many options we have we can not miss the name of Gold so yes Gold can be one of the assets to consider diversifying our money into.

Now there are few reasons and I am going to share that with all of you. The primary reason is stability. Gold is actually one of the most stable asset when it comes to year by year performance. We have seen Bitcoin being on a roller coaster, we have seen the stock market being on a roller coaster, but when it comes to gold it is comparatively more stabilized asset compared to all of them.

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The second reason is obviously supply of gold which is increasing at a very slow rate around 1 to 2 percent a year is being increased in the gold supply through mining and when we compare it to crypto unlockings or even the fiat money where the supply is rapidly governed by the government.

Another reason is the hedge against inflation. Now, what does it mean? Historically, when we look at the inflation from the historical events, for example, the US inflation in 1970s that helped gold surge from 35 dollars per ounce in 1971 to over 800 ounce by 1980. And I think it is a gain of more than 20 times in gold, just because of the inflation event that took place historically.

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Now, let us talk about something that is actually a real world use case. Gold is used in many things. Maybe you might not even know that gold are used in electronics as well. Not only in the jewelry and other ornaments, but electronics do contribute a lot of gold involvement into them and that is why I think gold is a tangible asset, unlike any paper currency, or stock market stocks, or crypto market crypto tokens.

Even after all these factors, there is obviously a chance of volatility due to interest rate changes, global economic conditions, and many other factors. The sentiments of people change quickly, and people sometimes take their money from the safe asset into the risky asset for making profits. So yes, inflation is less in gold, but it is not completely zero. So you can still see volatility in gold as well, but compared to any other asset in the world, it is the least.

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Now, people are often seen comparing Bitcoin and gold together and claiming that Bitcoin is a digital gold because of its decentralized nature and the limited supply and I can agree with that statement till some extent but I think Bitcoin has its own name and we do not have to compare it with gold.

Yes, it can be something which is the best asset of its industry and so there is no need to compare it with gold and while gold is an ancient investment Bitcoin can be considered as a modern day hedge against inflation as institutions and big players are getting invested in Bitcoin and putting their money into it.

So yes, I am going to start saving in gold and for that I am going to explore options. I will look if I have to choose the gold ETF or any digital gold options provided by the government or I will go with the physical gold.

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Probably I will not go with the physical gold because there the limitation is there of buying minimum amount which is too much and in digital gold or gold ETF the limitation is not there you can buy with as little amount as possible so maybe I will either go with the digital gold or gold ETF at this moment at the time of writing this blog at least that is what I think but you can suggest me in case you are also investing in gold and maybe when our future generation grows up they will have gold, Bitcoin, Ethereum and Leo token with them as their future asset.

My personal plan is to invest a particular amount on a daily basis. For example, investing 10 dollars a day for the next 10 years, which will be equal to around 36 thousand dollars in the next 10 years invested for my future generation or for maybe something which will help me in the time of crisis or tough situation. That is the plan at the moment.

The 10 dollars can vary depending upon the financial situation I am going through. But yes, for now, I think that is how I will go with the investment strategy in gold on a daily basis.

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Lastly, I also want to tell why I think digital gold or gold ETF are the one I am choosing. It is because there are so many reputed players from where we can buy digital gold or gold ETF and we do not have to worry about storing it physically and so the risk of securing it goes away when we are choosing digital gold or gold ETF and I will definitely not want to have it in physical form because there is always a chance that someone will come and rob it.

What do you choose for yourself? Gold, Bitcoin, Leo or all of them together.

THANK YOU

Posted Using INLEO