You may have seen your friend or colleague buy gold bars regularly and wondered about the logic behind investing in gold over other avenues that are available to you. Let us take a look at seven reasons why you should buy gold bars and invest your hard earned money in physical gold.

1. Tangible Asset – Compared to paper money physical gold is a tangible asset that doesn’t lose its value due to counterfeiting or other such malicious activities. You can carry physical gold everywhere you go and monetize it during times of crisis.

2. High Demand – Gold has always been in high demand throughout the course of human history. In fact you aren’t likely to pinpoint a period when this precious metal’s supply exceeded its demand. Globally there is always a scarcity of gold and this has led to its price appreciation over long periods of time.

3. No Risk of Default – You have heard stories of authorities issuing bonds defaulting and other financial institutions where people have invested in failing. But when you buy gold bars there is no risk of default.

4. Universally Accepted – There is a restriction on the trade of currency notes across borders. The same is true for bonds and other forms of investments but gold is universally accepted. It can be bought and sold anywhere.

5. It is Indestructible – One of the primary reasons gold has for thousands of years been seen as a valued asset is because it is indestructible. Your paper money can be destroyed while investment in properties can result in losses due to political problems but gold bars can never be destroyed.

6. Hedging Tool - When you buy physical gold bars you are hedging against inflation. The equity markets can fail in certain parts of the world and other investment tools may not deliver expected returns. But physical gold has always been adjusting itself to inflation and hence you would always retain the purchasing cost and also earn healthy returns over long course of time.

7. Safe Investment – Though there is relative peace in the world you never know when the world gets engulfed in a political or military crisis. At such times gold remains your safest investment option.

Summary – In this write-up, we discuss seven reasons why you should buy gold bars and why it still remains the best type of investment in the world.