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5 Profitable Reasons to Invest in Gold for prudent investors. Not only due to the Gold Price


The function of gold can be as a safe-haven asset. Stability in the gold price is one reason why gold is viewed as an investment. During periods of economic uncertainty such as a recession or, worse, a depression gold benefits. Or as an economy moves into a boom-bust cycle. Or when there is price instability, inflation, or deflation. During periods of volatility in investments, the gold price per ounce soared. Take a look at the graph of the Gold Price during and after the 2008 Global Financial Crisis.

gold price

Gold bars or coins, gold futures, gold exchange-traded funds, and gold mining stocks. Are all options available to investors who want to invest in gold. The gold market is to buy or sell gold as a commodity or investment. Often quoted in the news is the gold price per ounce.

During these periods of uncertainty, investors turn to gold to secure their wealth. A common saying is that “I want to see the same number of zeros.” This is due to the fact that gold has held its value throughout time. This is especially the case during periods of turmoil in the investment markets. Often leading to periods of currency depreciation.


For thousands of years, gold has been a currency, a form of barter, and a store of value. From ancient times to the present, gold has played a significant part in our history. Because of its scarcity and intrinsic value. Gold in its various forms, became a preferred store of wealth and means of exchange.

gold price

Around 2500 BC, gold was first utilized as a form of currency in ancient Egypt. The ancient Greeks, Romans, and Chinese all employed gold. There was no gold price, just gold, utilized as a form of payment for international trade. Throughout Europe during the Middle Ages, gold coins existed in exchange. Arezzo in Italy was a major centre for gold production dating back to Roman times, and it still is today.

In modern times

Gold has remained a significant commodity in modern times. Many countries used the gold standard, which tied the value of their currency to a fixed amount of gold. This was until the twentieth century. The gold standard stopped due to the difficulty of maintaining a fixed exchange rate. The changing economic conditions drove the abandonment.
gold price
The gold price in USD has fluctuated over time as a result of supply and demand. Driven by constant changes in economic and geopolitical developments. Gold is still traded today and is likely the currency of Russia as the tragic war in Ukraine drags on. Then Bitcoin and other cryptocurrencies came into existence. They were going to change everything, even revolutionize and replace gold. Was the entire history of the last thousand years to be replaced?
Well, no
The graphs below plot the price of bitcoin in USD and the gold price. At times, bitcoin has outperformed, depending on the time horizon. But that misses the point. The gold price has a history and stability. Bitcoin lacks both history and stability.

Gold Price v Bitcoin USD



Graphs by TradingView

gold price
gold price
gold price

Regarded as a safe haven, gold remains an important investment today. This is in part because the gold price is out of the reach of government manipulation. In April 2023, gold price is currently trading at around $2,000 per ounce.


5 reasons to buy gold and it is not the gold price

A lot of factors influence the gold price. The supply and demand for gold is key. Geopolitical events and global economic conditions. Changes in interest rates and currency exchange rates. The level of volatility in the prices of other commodities, such as oil. All will have a greater or lesser impact on the gold market.
The gold market can be a complex and volatile market. But gold can be a complement to a well-diversified investment portfolio. In particular for investors seeking to hedge against inflation or economic uncertainty.

5 reasons to invest in gold

    • Inflation hedge
    • Safe Haven
    • Portfolio diversification
    • Tangible asset
    • Capital appreciation

Inflation Hedge

Historically, gold has been regarded as a buffer against inflation. The gold price tends to climb during periods of high inflation. During this inflationary period, gold has fulfilled its role.

gold price

Investors protect their purchasing power and maintain the value of their possessions. Holding gold during times of rising inflation and interest rates achieved this goal.

Safe Haven

Investors frequently view gold as a safe-haven asset. The gold price tends to hold its value during times of economic and political crisis. When the stock markets are unpredictable as is perceived at this point. Or, there is geopolitical unrest, such as the War in Ukraine or uncertainty over Taiwan. Investors can turn to gold to safeguard their wealth.

Portfolio diversification

Purchasing gold can help diversify an investment portfolio. The portfolio can be of stocks and fixed income securities. The gold price has a low level of correlation with other asset classes like equities and bonds. Investing in gold can assist in lowering a portfolio’s risk and volatility.

A tangible asset

Gold is a tangible item that has been utilized for thousands of years as a store of value. Gold, unlike paper currency, cannot be created or easily manipulated by governments or central banks, making it a long-term store of value. This is one aspect where crypto-currencies have been compared to gold.

gold price
gold price
gold price

Capital appreciation

Gold does have the potential for capital appreciation and depreciation. Gold should be viewed as a long-term investment, an opportunity for capital appreciation. When the demand for gold rises and the price rises, investors might profit from the gold price. More to the point, gold is viewed as a diversification asset.

Changes in the gold price can be viewed in terms of the most expensive producers, the South Africans. When the gold price falls below around $1,200 the South African producers go off-line. This is due to the high costs of production due to the depths of the mine shafts. It is crucial to note that gold can undergo price volatility and decreases. Thus, investing in gold on a long-term investment horizon is best.

5 investment strategies to invest in gold

gold price

Physical gold

Purchasing physical gold, such as gold bars or coins, is one of the most conventional ways to invest in gold. This will be at the current gold price. These can be purchased from a reliable dealer or broker and kept in a safe or vault. There are hazards associated with investing in physical gold. These include storage, insurance, and the constant threat of theft. Gold bars can be melted down, and thus the identity is altered.

gold price

The London Good Delivery gold bar can be identified and is recognised in the global gold market. It is regarded as the gold bar’s highest standard.

The London Bullion Market Association (LBMA) has qualified 52 gold refiners. They are known as Good Delivery refiners. These refineries are located in Switzerland, the U.S, Canada, Australia, and the UAE.

Gold can be ideal for your IRA. Check out Augusta Precious Metals IRA

Gold ETFs

Gold ETFs are funds that track gold price. They allow investors to invest in gold without holding physical gold. The ETFs are structured to track the price of gold bullion and are traded on stock markets, like any ETF. Examples of gold ETFs are.
SPDR Gold Shares (GLD)

In total, the ETF has $50 billion in assets under management. This is one of the largest and most popular. GLD follows gold bullion prices and is backed by actual gold stored in vaults.

iShares Gold Trust (IAU)
Another famous Gold ETF that monitors gold bullion prices. IAU charges less than GLD and is backed by actual gold stored in vaults.
gold price
Aberdeen Standard Physical Gold Shares ETF (SGOL).
This Gold ETF, like the others, monitors the price of gold bullion and is backed by physical gold. SGOL is well-known for having a low expenditure ratio and a high liquidity level.
Invesco DB Gold Fund (DGL)
This Gold ETF tracks the performance of gold futures contracts. Not the real gold prices. DGL is intended to provide gold price exposure without the need for physical storage.
VanEck Merk Gold Trust (OUNZ)
This gold ETF allows investors to opt to accept physical delivery of their gold. OUNZ tracks gold bullion prices and is backed by actual gold stored in vaults.
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With gold futures contracts, investors are able to buy or sell gold at a future date and price. Gold futures contracts are based on the gold price as gold is the underlying commodity.

gold price

Futures contracts are leveraged instruments. Using gold futures is specialised and this is a more advanced investment plan with a high level of risk.

Gold Mining Stocks

Gold mining stocks are stocks of firms that mine for gold. The world’s major gold mining companies are likely to be listed in the U.S. Canada or Australia. These equities are often influenced by gold price. As well as the mining company’s financial performance.

Mutual Funds
Gold mutual funds invest in a diverse array of gold mining stocks. They also invest in other gold-related investments. They enable investors to diversify their gold assets and not focus on a single stock.

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5 Profitable Reasons to Invest in Gold for prudent investors. Not only due to the Gold Price

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Warren William

Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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