Gold: Is it worth its weight?

*This content is brought to you by Brenthurst Wealth.By Michelle Burger*.If you've ever searched for 'gold as an investment', you've probably come across a fair amount of conflicting advice. Some say it's a 'dead asset' with mediocre long-term returns. Others argue it's the ultimate 'safe haven' during global uncertainty. So, where does the truth lie?.Gold has always been valued for its scarcity, beauty, and durability. Every civilisation – no matter how remote – has cherished it. It's been used as a currency since 600 BC and remains one of the oldest asset classes in history. In one of the most tumultuous years for investment markets to date, 2020, gold performed compared to stocks and bonds – reiterating that exposure to gold can play a crucial role in capital preservation in turbulent times..But in today's world of AI stocks and cryptocurrencies, does gold still deserve a place in your portfolio?.Why gold deserves a second look.Gold has been a trusted store of value for centuries. Its history speaks for itself. In today's uncertain world – rising inflation, global instability, and market volatility – gold remains a safe harbour..In 2024 alone, gold prices rose by 28%. Many investors turned to gold for stability while we faced everything from climate crises to economic upheavals..Gold isn't just for the super-rich storing bars in Swiss vaults. It can be part of your investment strategy, too. Compared to property, gold offers unique advantages. For instance, splitting a gold bar in half doesn't affect its value, but a house? That's another story..6 ways you can invest in gold.Gold investing doesn't have to be complicated. There are plenty of ways to add gold to your portfolio, depending on whether you prefer the physical asset..Gold bullion: Coins and bars are the traditional way to hold gold. They're tangible and timeless, but storage and insurance costs can add up.Spot gold: This reflects the price of one troy ounce of gold purchased instantly. It offers exposure without the hassle of owning physical gold.Gold futures: These contracts let you lock in a gold price for a future date, whether you settle in cash or physically receive the gold.Gold options: Similar to futures, but with no obligation to buy or sell. They're flexible, letting you hedge or speculate on price changes.Gold ETFs: Exchange-traded funds track the price of physical gold or a basket of gold-related companies. They're a simple, low-cost way to diversify.Gold stocks: Invest in gold mining or production companies. These shares don't always mirror gold's price but can offer sector exposure..What about the costs?.Yes, holding physical gold can be expensive. Storage and insurance aren't free. But every asset has its costs and risks. The key is balancing these against potential benefits..At Brenthurst, we recommend including gold exposure in a diversified portfolio. Options like gold ETFs or unit trust funds, which invest in mining companies, can give you the benefits without the headaches of physical gold ownership..Building a balanced portfolio.Diversification is the cornerstone of smart investing. That's why we never suggest putting all your money in one asset class. Gold could make up 3% to 20% of your portfolio, depending on your risk profile. This approach has helped us create long-term wealth for our clients over the past 20 years..Gold isn't just an ancient relic—it's a modern-day tool for protecting and growing wealth. The secret lies in using it wisely as part of a well-rounded investment strategy..* Michelle Burger is a financial advisor at Brenthurst Wealth Pretoria and George michelle@brenthurstwealth.co.za .Read also:.Magnus Heystek: Please Sir, can we have another R1 million?Financial guidelines to build and protect your wealthUnderstand the risks when you choose alternative investments

Gold: Is it worth its weight?

Related Stories

Ramaphosa accuses panel of relying on hearsay in latest Phala Phala fightback

Driven: Porsche 911 GTS - The sweet spot gets sharper

Anthropic's newest AI tools are making customers decidedly nervous

SA's electricity system: 300 000 jobs; a flawed system; zero accountability