Should you buy gold? Is it a worthwhile investment?
You see plenty of television commercials and advertisements to buy gold and own gold. But what intelligent reasons are there to invest in gold?
The obvious reason is that gold assets are an excellent place to park your money for the purpose of investing in something that will retain its value over time.
But there are plenty of other good reasons to buy gold. Keep reading to find out what they are.
1. Excellent Hedge Against Inflation
Historically, one of the best reasons to buy gold is that it’s a proven hedge against inflation.
One of the factors here is that the value of gold tends to increase as the cost of living rises. The specter of inflation, which is currently eating away at the value of the US dollar, erodes the worth of cash and treasury yields. This, in turn, lessens the attractiveness of these assets.
Gold, on the other hand, becomes a crucial part of a diversified portfolio during times of high inflation. That’s why it’s important to invest in gold as a proven safe haven for your money.
2. It’s a Tangible Asset
Another intelligent reason to own gold is that doing so furnishes you with a tangible, real asset.
It’s a fact that much international and just plain everyday finance involves the movement of nothing but numbers in an electronic ecosphere. There’s precious little actual currency that’s changing hands.
This fact means that many investments are sketchy and uncertain at best. Should a financial catastrophe occur—which seems ever more likely in the uncertain post-COVID world—most investors will have few actual assets to which they can resort.
Owning gold is different. It’s a physical resource that can’t evaporate into thin air like the most recent Bitcoin valuation.
3. Maintains Its Value
It goes without saying that gold has been a valuable asset since the beginning of history.
Gold has always been the most precious of precious metals, and this means it has long been useful as a means of storing value. And gold has been used as money for thousands of years; it may not be a currency any longer, but all fiat currencies have declined in relation to gold.
That’s because gold retains its value, irrespective of the price-fixing and regulatory manipulations of reserve banks and governments.
4. The US Dollar Is Weak
The US dollar is perhaps the top reserve currency globally, but it has still experienced a lingering weakness against other currencies.
The world economic outlook is unsteady and constantly fluctuating. At times this year, the dollar has strengthened its position against other currencies, while at other times, it has weakened.
During previous periods when the dollar has weakened against other currencies, investors have poured their investments into gold. This is because as the dollar plummets, the gold price increases.
So it’s a safe bet to park your money in gold assets to hedge against the fluctuating dollar.
5. Easy Liquidity
Another intelligent reason to invest in gold is that it is liquid and relatively easy to move.
It’s an excellent asset to store value, but not one that’s immobile and oftentimes difficult to sell—such as a home or land. There’s little trouble to be had when it comes to divesting yourself of gold coins should the need arise.
Just about any coin shop or bullion dealer will recognize your gold assets, and you’ll have no trouble selling them for cash or trading them for other goods that you might need.
6. Increasing Demand
So we’ve seen several of the important reasons to buy gold. These include its tangibility, its use as a hedge against rising inflation, and its talent for maintaining or increasing its value.
But another factor to consider is the increasing global demand for gold. Remember, gold is coveted for many reasons and has many uses other than simply storing wealth.
Of course, gold is often used in jewelry, with increasing demand in India and China, with their enormous populations that amount to nearly half the world’s total. Gold is also used in electronics, computers, and certain medical implements.
7. Hedge Against Politics
In the wake of COVID-19, as we head into the stormy ’20s, social and political instability seems to be increasing at an ominous rate.
And one of the more important reasons to invest in gold is because it’s a way to protect yourself against the bad acts of greedy and duplicitous politicians. Governments are having to reckon with the wages of past sins, and that often means a turn toward victimizing their citizens.
Owning gold is a hedge against the coming avaricious asset seizures of debt-ridden and cash-strapped governments. It’s a good way to keep some of your wealth outside of the banking system and even outside the political jurisdiction of your country.
8. Stronger Protection
Finally, one of the best reasons to own gold is that it affords much stronger protections than other precious metals or cryptocurrencies.
The thing about other precious metals, such as platinum or silver, is that these elements are strongly tied to industrial uses. This means that economic downturns can affect the value of these metals over time.
Cryptocurrencies, meanwhile, are fickle and of indeterminate economic performance during times of crisis. There’s just no way of knowing how they’ll perform in a pinch.
But gold is a monetary precious metal, and it has a proven track record of maintaining value during times of crisis.
Buy Gold Today
Gold has been a valuable asset since antiquity. And that’s why it’s guaranteed to be a safe, stable resource to hedge your money against market volatility and an uncertain political climate.
So, are you looking to buy gold? Contact us today to see how we can help you invest in gold.