Men have long dominated Wall Street and the financial institutions it houses. However, women have staked their claim at the table when it comes to financial wit and decision-making power. In fact, Ameriprise found that 41 percent of women are making financial decisions – whether for themselves or the household.
Being that the investment philosophies of men and women tend to differ, we’re taking a look at the many reasons women love gold – even when it doesn’t come in the form of jewelry. Here are the top three reasons savvy females are finding value in gold and adding precious metals investments to their portfolios.
Financial Security for Families and Children
The maternal nature of women, whether it be for their children, parents or friends, makes them prone to worry about the safety and security of their loved ones above all else. Because of this, women are attracted to the long-term security that gold and similar precious metals provide to an investment portfolio. Gold has historically held value due to its universal use and continuous demand globally. A female investor with gold in her portfolio can be confident that she’s left her family with a means of getting by, whether it be tomorrow or even 50 years down the road. Very few investment assets can provide this same level of longevity.
Less Aggressive Investment Philosophy
It’s a well-known fact that women are typically less aggressive investors than men. While men often take greater risks searching for opportunities to secure a hefty profit, women focus more on reliable investment options that will provide long-term financial security. Gold, known as the “safe haven asset,” not only holds its value historically, it provides diversity to an investment portfolio. During times of uncertainty, such as market volatility, political turmoil or natural disasters, precious metals investments act as a hedge, protecting investors’ financial well-being. Women turn to gold as a security measure in the event other assets they hold suffer losses, smart move.
Not Timing the Markets
Many advisors and investment pundits will advise that you can’t time the markets, but that doesn’t stop investors from trying. While there may be signals alluding to potential movements, the markets are an untamed beast. With this in mind, women typically opt to use proven investment strategies that apply to varying market conditions. Gold and other precious metals are known for holding fairly steady over the long-term, leading women to seek out these investments regardless of the current market environment. Added bonus, gold’s value actually tends to increase during turbulent times.
Gold is good for a whole lot more than glittering. For female investors keeping financial security top of mind, precious metal assets offer a sound compliment to investment strategies by providing a longevity and diversification hedge to portfolios.
For investors interested in learning more about how gold and precious metals can enhance their investment portfolios, download our Gold and Silver Investment Guide. Or give our team a call and we’ll be happy to answer any of you questions.