Should you invest in gold 2016

## Should You Invest in Gold in 2016?

Gold is a precious metal that has been used as a form of currency and investment for centuries. In recent years, gold prices have been on a rollercoaster ride, hitting record highs in 2011 and then falling sharply in 2013. So, should you invest in gold in 2016?

There are a number of factors to consider when making this decision, including:

* The current economic climate
* Your investment goals
* Your risk tolerance

### The Current Economic Climate

The global economy is currently facing a number of challenges, including slowing growth in China, falling oil prices, and rising interest rates. These factors have led to increased uncertainty and volatility in the financial markets. As a result, investors are looking for safe havens to protect their wealth. Gold is often seen as a safe haven asset, as it is not correlated to the performance of the stock market or other financial assets.

### Your Investment Goals

What are your investment goals? Are you looking for a short-term investment that will yield a quick return? Or are you looking for a long-term investment that will grow your wealth over time? Gold can be a good investment for both short-term and long-term investors. However, it is important to keep in mind that gold prices can be volatile, so you should only invest what you can afford to lose.

### Your Risk Tolerance

How much risk are you willing to take? Gold is a relatively safe investment, but it is not without risk. Gold prices can fluctuate significantly, so you should only invest in gold if you are comfortable with the potential for losses.

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### Pros and Cons of Investing in Gold

There are a number of pros and cons to investing in gold.

**Pros:**

* Gold is a safe haven asset that can protect your wealth during times of economic uncertainty.
* Gold is a physical asset that you can own and hold in your possession.
* Gold has a long history of being used as a form of currency and investment.

**Cons:**

* Gold prices can be volatile.
* Gold does not pay interest or dividends.
* Gold can be expensive to store and insure.

### How to Invest in Gold

There are a number of ways to invest in gold. You can buy physical gold coins or bars, or you can invest in gold ETFs or mutual funds.

* **Physical gold:** You can buy physical gold coins or bars from a variety of dealers. Physical gold is the most secure way to invest in gold, but it can also be the most expensive.
* **Gold ETFs and mutual funds:** Gold ETFs and mutual funds are a more affordable way to invest in gold. These funds invest in gold bullion, and they offer a variety of features, such as diversification and liquidity.

### Conclusion

Whether or not you should invest in gold in 2016 depends on your individual circumstances and investment goals. If you are looking for a safe haven asset to protect your wealth during times of economic uncertainty, gold may be a good investment for you. However, it is important to remember that gold prices can be volatile, so you should only invest what you can afford to lose.

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