Reasons to invest in gold in 2021

As 2021 progresses, economic growth and a solid recovery are expected globally after a 2020 in which everything fell apart due to the great health crisis. It is time for investors to start considering which are the best assets to invest in considering the current panorama goldco review, and gold is one of those that always receives special attention because it is considered a good safe haven asset. Is it worth buying gold in 2021? Experts point to the importance of always having investment gold as part of the portfolio in order to protect against inflation, among other things.

Heres a look at the top reasons that make buying physicalgold a great investment idea for this year.

Gold as a store of value

Regardless of the economic impact that may take place thisyear, buying physical gold can be a good option for a number of reasons. One ofthe most important to keep in mind is that the precious metal acts as along-term store of value.

We are facing a reality in which fewer and fewer people usecash in their daily lives, especially young women. It is a trend that hasoccurred for some years, which has not stopped growing, and which increasedsignificantly in 2020 as a result of the coronavirus pandemic. There are evencountries that hardly use cash payments anymore. Buying a gold bar or aninvestment coin offers the security of having something physical and palpablewith a value that is maintained over time and that does not depend on thefluctuations of the policies of central banks or governments.

Investing in gold to hedge against inflation

Another attraction of gold is that it serves as a hedgeagainst inflation. The fear that investors have of an upcoming rise ininflation due to the measures that governments and central banks are taking,has caused the demand for physical gold to grow. What they seek with this is toprotect their purchasing power.

Gold has always been an excellent inflation hedging tool. Infact, the asset stands out for maintaining its value over time against theconstant degradation of currencies, which causes its price to increase. In thisway, central banks cannot degrade the purchasing power of gold by printinglarger amounts of coins, and the gold metal does not pose a risk of default.

The special taxation of physical gold

The taxes that the investor must pay to the State is acompelling reason when deciding on one asset or another. One of the advantagesof physical gold, whether in the form of bullion or coins, is that it has aspecial taxation in the European Union, in which investors are exempted frompaying VAT with the acquisition of pieces of 2 or more grams. What does thisimply? That all the money that is invested translates into gold.

If we talk about personal income tax, the sale of gold istaxed by the difference that exists between the purchase price and the saleprice, as an increase or decrease in equity in the savings base. On the otherhand, if the investor is a resident of a community in which it is necessary tomake a declaration of patrimony, the gold is declared in the same way as therest of the assets and investments.

Immediate liquidity

Finally, we cannot forget the ability of gold to generateimmediate liquidity anywhere in the world.

Gold has been the universal currency par excellence forthousands of years. Nowadays, it is very easy to convert it into cash orcurrency in all countries, even the most remote ones.