When it comes to investment, most businesses and their owners only think about stock trading or real estate. It’s common for small businesses that are growing fast to invest in real estate for a more financially secure future. Then again, if you are a business owner, you must think of company investments the same way you think about your personal investments like a retirement fund.
When you invest personally, you would focus on having a diverse portfolio. More importantly, your focus would be on protecting your assets against market uncertainty. There’s only one asset that can protect your cash: precious metals. If your business investment portfolio doesn’t include gold yet, it really should. Scroll down below to read the reasons why:
Gold is a Hedge to Your Money Needs
Precious metals like gold is a time-honored tool to protect cash investments against currency fluctuation. The future is rife with economic uncertainty. Savvy investors plan ahead for future events that could mirror the 2008 financial crisis, or to a lesser extent, political events like the recent Brexit vote in Britain. Economically and politically tumultuous events like this send the value of currency spiraling downwards. In such a scenario, you will need gold to hedge against damages and protect your wealth. Precious metals like gold are the only assets that can do this.
Make Money Even in the Times of Crisis
Gold is valued inversely to the value of currency. Typically, when the value of the dollar is up, the value of gold is down. This is why you see wildly fluctuating valuation charts for gold. However, the real value of gold kicks in when the value of the dollar plunges. In a scenario like the 2008 financial crisis, gold becomes practically the only viable wealth. Those who own gold make money when everything else goes crashing down. Therefore, it’s wise to invest in gold early on.
Use It for Trading When Money is Tight
Historically speaking, gold has acted as a currency in a certain manner. This is true even for today. If you have gold assets, you can use them for trading. Individuals typically use gold for trades like food, handicrafts, or ammo. Businesses can offer gold assets when in debt, for settling lawsuits, or in acquisition payments. When money is tight, gold can be an invaluable asset to have around.
Use Gold to Diversify Your Company Investment Portfolio
As mentioned above, gold is the best asset to diversify a portfolio filled with stocks and real estate. Gold is a great asset to diversify retirement funds as well. Reputable gold dealers like Lear Capital can help you open so-called gold IRAs. Businesses can use gold as a hedge against potential financial losses. At the same time, if the company needs to offer retirement plans to staff, gold can be offered as an option to those retiring in the future.
Just like with your individual investments, business assets must be protected against economic and financial crises. If your company’s cash assets are not hedged with gold, then you risk losing it all to the next financial meltdown. Think ahead, and add gold to your company’s investment portfolio.