WHY INVESTMENT DIVERSIFICATION MATTERS (AND HOW PURCHASING GOLD ONLINE IN NZ CAN HELP KEEP YOUR PORTFOLIO DIVERSE)
Whether you have been building wealth through investments for years or are just starting your investment portfolio, you have no doubt heard about the importance of portfolio diversification. Essentially, investment diversification means spreading your investments across a variety of different securities. Often, the concept of portfolio diversification is described as ‘not putting all of your eggs in one basket.’ If you were to invest all of your savings in one stock, and that company failed, you would lose everything. Spreading out your investments helps to protect you from the unpredictability of the securities markets.
Why Portfolio Diversification Stands for Smart Investing
The above example makes it sound like you can be diverse just by distributing your savings across different stocks, rather than just buying into one specific stock. However, while investing in a dozen company stocks would technically make for a more diverse portfolio than investing in just one stock, no financial planner would look at that investment portfolio and call it ‘diverse.’
On the contrary, to have a diverse portfolio, you don’t just need to buy into different stocks, but also into different securities altogether. A truly diverse investment portfolio will have strategic investments in a wide range of securities, from stocks to bonds and beyond. This arrangement would protect you and your savings if one particular securities market had a rough year or even decade. For this reason, portfolio diversification is seen as the safest and smartest strategy in investing.
How Purchasing Gold in NZ Can Help Diversify Your Portfolio
Particularly at this moment in the investing narrative, choosing to purchase gold in NZ is one of the smartest portfolio diversification choices you can make. In 2008, when the housing market collapse in the United States knocked the world into an economic tailspin, many investors turned away from stocks and bonds and began moving big parts of their savings to precious metals.
Over the course of history, gold has had a great track record of retaining its value. In the United States, as the government’s habit of printing money continues to inflate the money supply and devalue the U.S. dollar, investors have used gold and silver to protect the value of their wealth and preserve their purchasing power. Investors in other parts of the world are seeing the virtues of gold as well, for similar reasons.
At Bullion Deals, we can help you to diversify your portfolio through precious metals. Since gold and silver are not closely related to stocks or bonds, they are a great way to protect yourself from the volatility of the rest of the securities market. We provide a spot where you can easily purchase or sell gold on online. We even have an authorised financial planner on staff who can speak with you about your current investment portfolio and give you tips on how to use gold and silver for diversification.
Are you interested in purchasing gold online? Start browsing Bullion Deals for different quantities of gold bullion. If you need any help or advice, please click here to get in touch with one of our agents.