What are the benefits of investing in gold shares?

Investing in gold stocks can provide many of the same benefits as a direct investment in physical gold. Let’s look at some of the main benefits.

Diversification: We’ve already mentioned the diversification benefits you can gain from investing in gold. Gold is typically somewhat immune to falls in the share market, making it a great way to protect your portfolio from significant losses in a downturn.

Low price volatility: The price of gold is relatively stable over time and generally doesn’t fluctuate as much as share prices. This can give you some peace of mind when share markets are volatile.

Inflation hedge: Rising inflation can quickly erode the value of your investments. However, gold has historically outperformed inflation, providing an excellent store of value.

How do companies utilise the funds generated through an IPO?

You can find the answer to this question in the IPO prospectus released by the company. Companies may put these funds back into the business or may plan out a new product or a new branch of services.