Although the price of gold may be volatile in the short term, it has always maintained its value over the long term. Over the years, it has served as a hedge against inflation and the erosion of major currencies and is therefore an investment worth considering. Some experienced gold holders prefer to limit their exposure to global instability and instead choose to safeguard their wealth with cash and gold reserves. If gold moves against you, you will be forced to contribute significant sums of money to maintain the contract (called margin) or the broker will close the position and you will suffer losses.
It is important to do your research and read Gold IRA company reviews before investing in gold. With inflation rising and the stock market price well below its highs, some investors are looking for a safe asset that has a proven record of earning, and that's gold. When economic times get tough or international conflicts, such as the war between Russia and Ukraine, destabilize markets, investors often turn to gold as a safe haven.
