By Peter Blake
When small companies create an investment portfolio, it is quite degrading to see that they dont invest in gold, and we have too many persuasive reasons for stressing on gold as an effective investment vehicle.
Small companies are now considering gold as the prudent resource to rely on. Almost every country including However, it is better to invest in gold bars and coins than ornaments, albeit every form of gold investment is known to be the safe and prudent option. The power of gold as an investment has been backed up by various reason especially for the small companies and business plans. There are many inherent advantages of gold investment for small companies, such as:
- Gold poses to be Main Currency: Thats true! The different paper currencies of different nations ranging from dollars to pounds and euros are all backed up by gold. Gold actually determines how much paper currencies can be printed by different countries, as the value of these paper currencies like dollars and others lie in the real gold, which acts as security. So, gold acts as the primary currency of our world and has an unquestionable value unlike the paper currencies. It does have an intrinsic value for the holders of real or physical gold.
- Gold Has High Liquidity Value: Gold is a liquid asset; it has the highest liquidity. Small companies that trade gold can convert the gold assets conveniently into the currency of the nation at any given time. This basic property of gold makes it a precious asset for an investment.
- Gold Provides Hedge against Inflation: Gold is the best class of asset that provides edge against inflation. It is equally effective for small company investment and for personal investment policies. You can buy gold anytime also.
- Gold Investments are Widespread: Gold does provide widespread investment facilities. Gold is the only diversified and advantageous assets that must be includes in every investment portfolio. It acts as a protection against inflationary conditions and also prevents the loss of intrinsic value.
Gold investment is undoubtedly the most prudent one for small companies. At least 5-10% should be invested in gold for better returns. - 23309
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Tags: Gold / OiL , Investments
