Transparent gold-backed transactions on blockchain
Home > Blog > Top 7 Reasons to Own Gold in 2023

Top 7 Reasons to Own Gold in 2023

Updated Sep 13 2023
7 Min
Views
mr slava
Nick Patel
CEO & Founder at Clinq.Gold, Bank of Bullion | Keynote Speaker

Gold has many centuries, if not millennia, of wide use as a symbol of status, wealth, and good taste. Gold accessories have been cherished since the early civilizations, and the use of gold as a globally accepted currency also fueled people’s attraction to this gold metal. 

The times have been changing, and gold, along with other precious metals, has lost its primacy as a currency with the states’ departure from the Golden Standard. Yet, the modern period in global finance and economy signals a new turn, and gold regains its role as a more stable class of assets compared to the US dollar, securities, and stocks. 

If you’re still undecided about whether you need gold in your investment portfolio, here are the top 7 reasons to take it seriously in 2023 and beyond. 

#1 Glorious History of Value and Recognition 

Gold has been used for various purposes since time immemorial; it was a precious asset and a currency equivalent, holding a value of its own and also being used in financial transactions. Though the times of golden coins in circulation are long gone, gold still enjoys the globally recognized status of a scarce, precious metal of high value. Thus, owning it is always a good idea, as it can be preserved for decades and passed down to further generations without losing its meaning and value. 

#2 Weakening USD 

The US dollar has been a globally recognized and widely used reserve currency for many decades. However, USD’s slow and unavoidable downfall started in 1998 and has been going faster since then, culminating amid the 2008 financial crisis and now regaining speed during the escalating geopolitical tension. 

The weakening USD also contributed to the rise of gold prices, resulting in a 300% increase from 1998 to 2008 and then doubling again in 2008-2012. The processes that led the USD to downfall in that period related to budget deficit, trade deficits, and careless increases in the money supply. However, the 2008 crisis’s lessons seem to have taught FED nothing, and the country is again heading to a critical point where USD will lose much of its strength and significance. 

These trends may tell much to an intelligent investor, giving you a good entry point to buy gold now and enjoy a generous ROI in the next couple of years.  

#3 Looming Inflation 

The processes described above inevitably push the United States to greater inflation, and gold is an excellent hedge against this economic trouble. As the USD continues losing its purchasing power to inflation, gold rises in price and gives a vital hedge to investors amid the skyrocketing cost of living. Interestingly, this dynamic is not unique to US investors only; a gold owner in any corner of the world is firmly shielded against inflation and can get lucrative gains from their golden assets. 

#4 Geopolitical Risks 

The USA is on the threshold of recession, which may drown the whole world in economic turmoil. We live in times of intensifying distrust of governments, with people looking for more universal assets of value. Gold can act as a shield against geopolitical uncertainty, as it possesses globally recognized value, unlike a national currency. Thus, gold offers relative safety amid the looming risks of geopolitical conflicts; it can be exchanged for any currency in any part of the world. 

#5 The Law of Demand and Supply 

Gold is becoming an increasingly scarce commodity as its mining slows down, and central banks are growing more reluctant to sell bullion gold to interested buyers. Thus, following the law of declining supply, demand for gold is doomed to rise in the coming years, pushing gold prices upward.  

#6 Diverse Portfolio 

Any investor’s golden rule is not to keep all eggs in one basket. Buying gold matches this principle ideally, as stocks, currencies, and any other securities enjoy peaks and downfalls. Thus, gold can counterbalance your riskier, though higher-yielding, asset portfolio. 

#7 Promising Price Potential 

Last but not least is the price potential of gold in the short-term to mid-term perspective. Physical gold prices have risen by 10% in 2023, and the next goal predicted by the UBS investing analysts is $2,200 – a realistic target by March 2024. Therefore, even at the current peak, gold still promises an almost 8% upside within around half a year – a profitable deal for a stable, conservative asset like gold. 

Time to Buy Gold Is Now

Thus, as you can see, the moment for buying gold is ideal. Global dynamics are unfavorable to USD, and the world is on the threshold of new shocks, from new COVID-19 waves to mounting political uncertainty. Gold can become a stable, firm shield against these turbulences, protecting your belongings and balancing your portfolio for long-term resilience.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest articles
News 11 min

Africa is a rapidly developing continent with a diverse patchwork of financial systems and transnational financial arrangements. Its banking ecosystem is far from mature, mainly due to the long-standing colonial and post-colonial legacy that hindered the development of African states and focused on extractive economies only.  Yet, the times are changing, and the 21st century […]

29.03.2024 at 11:46
Crypto 11 min

We’re witnessing a major shift in the investor sentiment about BTC and gold at the beginning of 2024. What are these trends’ determinants? And how do these recent dynamics affect the standing of tokenized gold? Let’s cover the relationship, the current state of BTC and gold price movements, and their implications here.  Factors Behind BTC’s […]

29.03.2024 at 11:43
News 11 min

As the world’s gaze is again positive on crypto, tokenized gold continues its glorious pace of adoption. With many drivers for growth, tokenized gold assets enjoy popularity as a means of exchange, store of value, and profitable investment instrument. Besides, tokenized gold resolves the operational value challenge of physical gold, thus giving it a more […]

29.03.2024 at 11:41
Crypto 11 min

The beginning of 2024 marked a new page in the world of crypto – the SEC endorsed the launch of 11 Bitcoin ETFs in the regular stock market. This long-awaited decision opened the door to wider crypto adoption and gave many enthusiasts and startups hope for cryptocurrency’s recognition in the digital payment industry.  Yet, even […]

04.03.2024 at 4:03
News 11 min

In a world dominated by the economic power of the USA, the BRIC bloc initially started as an informal group of leading emerging economies. The term was coined by Jim O’Neil – an economist who envisioned the future of these regional giants in cooperation and economic alliance. In 2005, the group included only Russia, China, […]

12.02.2024 at 10:14
News 11 min

While the majority of states are still pondering over the status of crypto assets, the UAE has embraced the unique market advantage of being a pioneer in crypto acceptance. A loyal and welcoming attitude to crypto startups has made Dubai the #1 crypto hub in the region and globally, with hundreds of blockchain-related businesses flocking […]

12.02.2024 at 10:13