Along with the high uncertainty in economic conditions due to the ongoing Covid-19 pandemic, gold investment in precious metals is expected to remain shiny for some time to come.

Public interest is high for gold investment because this commodity can be useful as a means of hedging. This means that gold from time to time will maintain its value and has the opportunity to beat inflation.

For smart investors who want to invest in gold, they need to know what are the benefits of precious metal gold as an investment instrument. Here are 7 benefits of investing in precious metals as reported by Tempo:

1. Inflation protection
It might be said, gold is the only commodity that can maintain its value in the long term and is able to conquer inflation. With values ​​increasing with the cost of living, it often peaks during periods of high inflation.

When there is an increase in inflation, the value of money itself becomes low. On the other hand, gold which actually rises is higher in price, thus making gold more valuable.

2. Gold as Diversification
Gold investment is a very good type of investment for diversification. The reason is, this precious metal has a very low risk but its value continues to increase.

In addition, the movement of gold is usually against the stock market. So, when the stock market declines, gold owners will not lose too much because the price of gold will increase.

On the other hand, the benefit of diversification is that it can protect assets from unexpected economic events. Well, gold is an investment that can offer the kind of diversification and protection for a portfolio and nothing quite like the privileges of having gold.

3. The Value Always Increases
You could say, gold investment is very minimal risk. One of the reasons the existence of gold is currently in great demand among the people as well as India where gold is considered auspicious and no celebration is complete without it.

In addition, the limited supply of gold also ensures that prices will always experience significant increases and have very high demand.

4. High Liquidity
The high demand for gold ensures that gold is easy to sell. This condition makes gold a very liquid asset. The existence of gold is highly valued everywhere so it is very easy to melt it into cash in times of crisis.

5. Counterbalance to Currency Devaluation
Financial uncertainty can cause the strongest currency to lose value. While this currency can be printed 'at will', on the other hand, gold as a tangible asset cannot be reproduced by machines, so it is believed that it can protect investors from currency devaluation.

6. Easy to trade
Gold as an item that is very easy to trade thanks to the ability to maintain its value in the long term. Gold can survive the ups and downs of financial uncertainty. Hence, most countries believe they have huge gold reserves which can be used to combat various situations.

7. Gold is Easy to Have
Along with the development of technology, now to have a gold investment does not need a long process. With the use of electronic media, every individual can invest in gold, whether in the form of jewelry, pieces or even bars.

There are many benefits of investing in precious metals, right? Before starting to invest, first make sure that this investment instrument is in accordance with your risk profile!