Gold is cherished throughout the world and has a long history in many cultures. Throughout the years, people have held onto this metal, as it maintains value even when other types of currency do not. For example, many investors purchase gold bullion or coins. Here are a few more reasons to buy this precious metal. 

Why Purchase Gold?

1. Geopolitical or Financial Uncertainty 

When the world economy falters or major geopolitical events create a sense of uncertainty, gold continues to be highly valued, which is why it is often referred to as the crisis commodity. During unpredictable times, such as a major virus spreading or war, it often performs better than other investments. During various European Union crises, for example, the price rose. 

2. High Demand

As emerging markets have grown their economies in recent years, the demand for gold has risen. In particular, this metal plays major roles in Indian culture. For example, people in India often buy gold jewelry during wedding season, when the demand increases significantly. Additionally, Chinese investors are always looking to buy this metal, as it’s seen as a traditional form of saving in China.

3. Supply Limitations 

The supply of gold has shrunk, as the mining production slowed in 2000. Plus, it can take five years to a decade to open a new mine. With low supply and high demand, the price continues to rise. During the coronavirus, the shortage has become even more acute, driving up prices. In fact, some major banks, such as Goldman Sachs, have recommended buying up gold. 

If you are looking to buy or sell gold bullion, contact the experts at Coins Plus. Serving Cincinnati, OH, since 1972, they have built a reputation for excellent customer service, fair pricing, and industry expertise. They also offer appraisal services and deal with platinum and silver, as well. Call (513) 621-1996 to speak to a member of their team about purchasing or selling gold bullion, or visit their website to learn more about their services.