Gold - The Recession Proof Investment

All of us are aware about the deflation, which is occurring in Britain. It is however, expected that a period of inflation is inevitable at the end of this deflationary period. With the ongoing recession, not only in the UK, but also throughout the world, a difficult situation is posed to the investors.

The difficulty that investors face is related to the selection of assets, commodities, and stocks for investments, because not all of these investments can survive recession and if the choice is not made wisely, the investors end up losing a lot of money. In these circumstances, investments cannot be ceased. Hence, the only solution is to make recession proof investments.

Gold is one of the best investments in periods of recession. This is mainly because of the fact that gold is almost the only commodity that is not devalued by inflation and remains a true store of wealth at all times.

Besides the aspect of the value of gold, another important aspect is that Gold is considered to be a North Star asset because of the reason that the value of many assets rotates around that of gold. Gold is likely to be a valuable and a recession proof investment, mainly because the value of gold has almost tripled over the period of the last seven years.

The value and returns on investments in Gold have had far better performance records than the stock markets, which show that while stock markets may be prone to recession, Gold is not. Other than that, it is also a fact that the value of Gold is not affected by the policies and actions of an organisation or any world regime.

This makes Gold independent of the policies of companies or countries as can be in case of oil. Gold is also the preferred metal in many countries of the world, and hence, these countries use this metal as a backing for their currency.

Gold acts as the perfect hedge when it comes to investments, and you can be sure to get valuable returns after having invested in Gold. Gold has always been the perfect hedge against inflation. If we look at the gold prices in the past seven years, we can see that between twenty five to thirty percent has been accrued in Gold investments; hence, the wealth is seen doubling after the period of every three and a half years.

No matter how wisely you invest in stocks, you are likely to face losses when recession hits. Many large companies have suffered huge losses. In such circumstances, it is important to make sure that the investment you are making is not only going to give you returns, but would also not be hit by recession. Gold is one perfect example of such an investment. Therefore, you should make it a point to make investments in Gold, which is nothing but a hedge in itself.
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