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  • Writer's pictureMandino Tan

How to Invest in Gold: The Smart Way to Hedge Against Inflation and Bear Markets

Updated: Apr 20, 2022


  1. Introduction

  2. What is gold?

  3. How is gold used?

  4. What are the benefits of using gold?

  5. How to invest in gold

  6. What are the risks of investing in gold?

  7. Conclusion


Are you looking for a way to invest your money that can help you protect your portfolio against inflation and bear markets? If so, then gold may be a good option for you. Here we will discuss how to invest in gold the smart way so that you can reap the benefits while minimizing your risk.

1. What is gold?

Gold is a precious metal that has been used as currency, jewellery, and other decorative items for centuries. It is sought after for its shine and ability to withstand the test of time. Gold is durable, malleable, and doesn't corrode in the presence of other elements, making it a valuable asset to own. Gold also has a relatively low melting point, so it can easily be turned into coins, bars, or other decorative items.

2. How is gold used?

Gold is often seen as a safe investment during times of economic instability. When the stock market is crashing, gold is a commodity that tends to hold its value. Unlike stocks and other paper assets, gold is a physical asset that you can hold in your hand. Gold is also used in jewellery and other decorative objects. However, for investments, gold is usually traded as coins or bars. And most of the time, sitting in a secure vault while investors trade on exchanges. 

3. What are the benefits of investing in gold?

Gold is often seen as a safe haven during times of volatility in the market, and for a good reason. Here are three key benefits of investing in gold:

  1. It is a hedge against money, inflation and equities.

  2. Unlike money, gold is limited in supply.

  3. Gold has historically been an alternative to currencies, investments and assets and is usually used to hedge against inflation and bear markets.

4. How to invest in gold?

So, how do you invest in gold? The first option is to buy physical gold coins, bars, or jewellery. The second is to invest in a gold ETF, a fund that tracks the price of gold. Thirdly, is to invest in a gold mining company. Each option has its risks and rewards, so it's essential to do your research before investing. No matter which option you choose, it's important to remember that gold is a long-term investment and should be part of a diversified portfolio.

5. What are the risks of investing in gold?

Despite its many benefits, gold is not without risk. It doesn't react well when the government starts printing money. The act of printing money can cause inflation, which reduces the value of gold over time. In addition, when the stock market booms, gold may not fare too well either. The value of gold can also be affected by how much is available in the market. When there's a lot of gold available, the price goes down; when there's less gold, the price goes up. All in all, it's crucial to weigh the risks and benefits before investing in gold.


Gold is a safe investment that has been used for centuries to hedge against inflation and economic downturns. You can protect your portfolio from market volatility and ensure that your assets are always worth something by investing in gold.


All information are for informational purposes only and should not be relied upon as financial advice.

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