One way to profit from gold is to invest in gold mining shares. See the reasons why you should invest in Gold Production in Nigeria today!!
In 2021, the Federal government has vowed to put the structure in place for gold production in Nigeria to begin. Furthermore, the registration of local gold refineries and mining firms have started as the CBN bought Nigeria’s locally produced gold for the first time.
Unlike crude oil that is vulnerable to extreme price fluctuations due to several geopolitical events and lack of demand, gold remains valuable and more profitable in uncertain events.
Around April, oil price collapse to a negative decline. Gold remains a very viable resource to invest in, especially in the light of the call for green and renewable energy. Now Nigeria has set to begin commercial production of gold. Are there other reasons why gold production is worth investing in?
Why You Should Invest in Gold Production In Nigeria
Gold has been used historically for storing a value to present
Just like other precious stones, gold is a highly valued commodity, and through ancient times, have been used to accumulate wealth and value. In the event of economic collapse and decline, the price of gold goes up. This is important as the Nigeria economy is unstable and prone to shocks.
Inflation is historically good for gold.
As the price of goods and services rise in Nigeria, with investment in gold production, your finances will be better equipped to withstand losses. The cost of gold increases when inflation occurs.
The demand for gold jewellery continues to rise in several countries
According to the latest research, the global gold jewellery market is valued at more than 100 billion dollars. As weddings and engagements take place, luxury gift item (like gold) demand continues to increase. In South-East Asia ( or the so-called Asian tiger), India and China, families entering the middle class is rising, and so is their love for precious stones. The Indians are said to hoard gold valued more than 700 billion dollars.
The supply of gold in the world is reducing.
Gold is scarce by nature, which why it is very much valued. If gold production in Nigeria can be boosted to a large extent, the country can be on the road to prosperity. The cost of gold mining in some other parts of the world has increased tremendously, and budgets for exploration is becoming smaller. This combined means gold will continue to be highly valued.
Central banks are piling up gold.
The major buyers of gold are central banks, as it is used to diversify reserve. It means the major purchaser of the locally produced gold in Nigeria, will be the Nigerian central bank. This shows that the investment of gold is a worthwhile enterprise that will indeed generate profits.
Value of Gold is linked to the U.S. dollar.
Whenever the price of the dollar falls, the value of gold increases. Why? Because the price of gold is in U.S. dollars traditionally. You have to note that gold and the American currency have a trading relationship that goes way back. The truth is that gold continues to do better than the greenback year in, year out.