Wealth protection
The nature of physical gold is that it will always have value and will always be in demand. This makes it a very safe investment over the long term, making it the perfect vehicle to protect your wealth. Investment performance, though historically strong, isn’t normally the overriding concern.
If your primary goal is short-term growth, then there are other investments specifically designed to be held for a short period, as well as investments that generate returns through recurring sources such as dividends or interest.
By contrast, gold’s rarity and durability led it to become the default store of currency or value for centuries, even when the price has fluctuated over the short term. Hence the term “gold standard”.
These fluctuations in the price of gold are why it is difficult to realize a return in the short term. If you buy an ounce of physical gold today and sell it tomorrow, then, unless the “spot” price has risen substantially overnight, the difference between the price you bought your physical gold for and the price you could sell it for in a hurry (the spread), will likely wipe out the gain you have made.
