For investors like small companies, an investment portfolio without precious metals like gold is embarrassing now, and there are too many compelling reason for investing in gold.

Small companies now consider gold bullion to be the wisest investment tool to bank on. Most of the countries such as India are now investing on precious metals like gold by making jewelries and ornaments. This is a healthy and wealthy practice.

However, it is better to invest in gold bars and coins than ornaments, albeit every form of gold investment is known to be the safe and prudent option. The power of gold as an investment has been backed up by various reason especially for the small companies and business plans. There are many inherent advantages of gold investment for small companies, such as:

- Gold is the Principal Currency: It definitely is. Every nation has its own paper currency like dollar, pounds and euro. These currencies of various nations are backed up by gold and its value. Gold is the primary determinant of the total number of paper currencies that needs to be printed by these nations because the value of these currencies like pounds and dollars depend on golds value, which is a security. Thus, gold is known to be the principal currency of the world and has an indisputable value unlike the paper currencies. It does have intrinsic value for the holders.

- Gold Has High Liquidity Value: Gold is a liquid asset; it has the highest liquidity. Small companies that trade gold can convert the gold assets conveniently into the currency of the nation at any given time. This basic property of gold makes it a precious asset for an investment.

- Gold Does Have Hedge Against Inflation: Gold is known to be the ultimate asset having hedge against inflation. It is the best vehicle for company investments and personal investments alike.

- Gold Investments are Widespread: Gold does provide widespread investment facilities. Gold is the only diversified and advantageous assets that must be includes in every investment portfolio. It acts as a protection against inflationary conditions and also prevents the loss of intrinsic value.

Gold investment is undoubtedly the most prudent one for small companies. At least 5-10% should be invested in gold for better returns.