5 Reasons Why You Should Buy and Invest in Physical Gold

Gold has always commanded good value in the market and will continue to do so for the foreseeable future.

But why is it so special? What qualities does physical gold possess that no other investment asset can compare? Why diversify your portfolio to include this precious metal? Read on as we explore the reasons behind the high value of physical gold.

Gold is Money 

Time and time again, gold has been chosen as the pre-eminent form of money in the free market. It has been money longer than any other currency—the use of gold as money is believed to have begun in 600 BCE, while the British pound (one of the oldest currencies in the world) only came into existence about 1,200 years ago.

While its price fluctuates, its value is timeless. In comparison, the paper currency loses value over time. As such, gold is a better means of preserving your purchasing power over the next few years than the dollars in your bank account.

Moreover, physical gold can outlast any currency that will be used and survive countless generations. It is thus common for parents to give their children gold ornaments to celebrate important events like marriage. For this reason, gold is an ideal way to preserve wealth in the long run.

Gold is a Tangible Asset

Physical gold can be held and cannot be destroyed by forces like fire, water, and time. Additionally, it does not need regular maintenance. Consider, for example, if you invested money in a property. You must expend time, effort, and money to ensure everything stays and looks up-to-date.

Another advantage of physical gold is that it cannot be hacked or erased. On the other hand, bank accounts and payment services are always within reach of hackers and identity thieves.

No Counterparty Risk 

When businesses perform poorly, investors may have to deal with the possibility of default risks or the other party’s inability to fulfil their obligations to stockholders.

However, gold is a financial asset that is not simultaneously another entity’s liability. As such, those who invest in gold do not need to worry about the other part having to fulfil a contractual obligation.

Gold is a Safe Haven

With gold, you can protect your investments through economic, monetary, or geopolitical crises.

Gold prices usually increase during times of instability: for example, the prices of gold surged in the summer of 2020, when the pandemic hurt stock markets. When such a crisis hits, investors seek out gold, resulting in greater demand and higher prices. 

Hedge Against US Dollar

The US dollar shares an inverse relationship with gold. As such, investors generally sell gold when the US dollar is strong, and vice versa.

Because gold acts as the dollar’s counterweight, it is an ideal alternative currency to invest in.


Thinking about getting into gold trading? Given its characteristics, we recommend adding it to your portfolio—this will help mitigate the risks of other assets and secure your purchasing power for the years to come.

Check us out at Jumbo Gold and Diamonds, one of Singapore’s leading gold and diamond traders. We buy and sell diamond and gold jewelry, silver and gold bullion, and more. We also provide no-obligation appraisals. Reach out to us for more information.