A common question asked when deciding to save gold is what returns you can expect. The key is understanding that high returns and high-risks come hand in hand; low-risk investments yield low returns.
Take a savings account at a bank for example; you earn extremely low returns (usually 0.1% per annum) but you can be assured that your money will always be safe. Gold falls into this risk-return category given its nature to keep pace with inflation. Gold has proven to hold its value as the cost of goods and services increase.
On the other hand, investing in asset classes like equities are considered higher risk. You can expect to earn higher returns in the form of capital gains and/or dividends. However, higher risk also means the chances of your investment failing to achieve its expected returns are much higher.
So does gold yield better returns?
All asset classes, other than cash, do not come with guarantees – they have different risk/return profiles. In a stable economy, gold provides you with a safe, low-risk asset. In times of financial crises and extreme market stress, gold has proven to outperform many asset classes.
Gold has an excellent track record
Time speaks of gold’s value over the ages. When you look at the performance of gold over the last 30 years, you might be pleasantly surprised to find that gold has done remarkably well as an asset class compared to other high-risk investments.
Don’t just take our word for it – take a look at the historical gold price chart <here–>https://www.hellogold.com/about-gold/> and see for yourself why thousands of Malaysians are starting to save in gold.
Convinced? start saving for your better future by downloading our HelloGold app!