Wealth protection
Physical gold inherently possesses lasting value and enduring demand, rendering it a highly secure long-term investment ideal for safeguarding wealth. While its investment performance has a historically strong track record, the primary emphasis is typically not on short-term growth. For those prioritizing immediate gains, there are alternative investments designed for shorter durations, as well as options generating recurring returns like dividends or interest.
In contrast, the rarity and enduring nature of gold have historically positioned it as the default store of currency or value, leading to the concept of the “gold standard” over centuries, despite short-term price fluctuations. These price variations in gold make it challenging to realize short-term returns. If one purchases an ounce of physical gold today and attempts to sell it tomorrow, unless there has been a substantial overnight increase in the “spot” price, the spread (difference between buying and selling prices) is likely to negate any gains made, emphasizing the difficulty of achieving quick returns in the gold market.
