While the price of gold certainly fluctuates, the overall value of this precious metal is timeless. You might wonder just how good of an investment gold really is, so we’re here to tell you exactly why it could be the key to preserving your wealth long-term. There are plenty of advantages that gold and other precious metals hold over other currencies around the world. However, there are of course risks as with any substantial investment.
Banks around the world are increasing their gold reserves, which is a sure sign that everyday investors should consider doing the same. Buying physical gold is a very different process than dealing in ETFs (exchange-traded funds) and the stock market: it gets you a tangible item rather than numbers on a screen. Gold is a great choice during times of financial uncertainty, as the currency value of precious metals can never be reduced to zero, unlike its paper counterparts. Read on to discover twelve excellent reasons to buy gold, and why you should consider this fantastic new investment in today’s uncertain climate.
1. Gold is One of the World’s Longest-Serving Currencies
Older than the United States Dollar or the British Pound Sterling, gold has been a form of currency for more than 3000 years. This outlines to investors the reliability and longevity of buying gold, as this long term solution retains its value and isn’t as subject to external factors as fiat currency. Fiat currency includes examples such as the Dollar, or Euro, where paper money has its value backed up by the government which issued it. On the other hand, gold and silver are considered a commodity currency, a physical product whose value relies only on the properties it offers.
Gold is more reliable than a fiat currency as while its value changes, price is based around a balance of supply and demand rather than the whims and fragility of the stock market. A bar of gold will likely retain or even gain value over a period of 10 or a hundred years, whereas a fistful of cash can only depreciate. The staying power of gold is unmatched by any global paper currency, which is an excellent reason to choose it as an investment.
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2. Gold Cannot be Destroyed, Stolen Digitally, or Created Synthetically
As money and currency slowly lose their meaning, gold remains as stoic as ever in its constant value. Your gold is much easier to protect than money, as a physical item you can store it as safely as you need. Bank accounts can be hacked, and your hard-earned wealth can disappear instantly, money that you never even held in your hand. Conversely, physical gold can be only stolen by burglars in great heists, an event much less likely to happen to you.
Paper money, even when stored as safely as possible by yourself, can be easily destroyed by water, fire, and the passage of time. Real gold is undamaged by these elements, so you need to worry about it much less. Unlike other popular investment commodities, for example, oil farms, or agriculture, gold cannot be “used up”. It remains as it is, a valuable and unchanging resource unchallenged by problems that face currency. In an age where almost all wealth is digital, or reliant on flimsy pieces of paper, it’s a great idea to have a form of physical wealth that isn’t dependent on any outside factor.
3. Gold can be Entirely Private
There are many excellent reasons why you might want to keep your wealth, or at least a portion of it, secret. There are very few ways in which you can achieve this in the modern world, however, gold is one of them. Physical gold bullion is one of a handful of assets in which you can invest anonymously, so no one else needs to know of your possession. Of course, you still need to report any gains on your taxes as with any investment.
Gold is an ideal investment to make to achieve some semblance of private or confidential wealth. It doesn’t require records, or certificates of ownership, to have value, all you need is the physical product. You could even store your gold in a vault in a location such as Singapore, where there are no requirements for you to report it. Additionally, the value to weight ratio of gold is high, so storage doesn’t take up too much space. Overall, gold is a perfect investment for private and anonymous wealth.
4. Gold is a Low-Maintenance Form of Wealth
As we mentioned in the previous reason to buy gold, storage is easy. A small fee is likely applicable as a vaulting charge if you want to use services such as safety deposit boxes in banks, however, overall the storage bill is very small in comparison to other commodities like real estate. Similarly, the maintenance is incredibly low, with no need to worry about breakage, cleaning, or other unexpected costs. Of course, you can always store gold in your own home, rent-free, and keep an eye on it every day.
Unlike a stack of dollar bills, the value of gold is incredibly dense. A single piece worth $50,000 can easily fit in your palm, unlike piles upon piles of paper money. You don’t need to worry about mold or water damage, as this precious metal’s properties in themselves add a huge amount of value to physical gold.
5. Gold is Simple and Unspecialized
In comparison to precious gems like diamonds, famous paintings, and rare collectibles, gold is a very simple valuable. Specifically, gold bullion, referring to gold in the form of bars or ingots, does not need to be verified or authenticated. It’s very difficult to falsify or create counterfeit gold, so you don’t need to be any form of an expert to buy it. Rare gold coins are the exception, but this is an issue for collectors and doesn’t affect investors.
The difference is collectors purchase items in the hopes that they’ll become more, rather than less valuable in the future. Investors, rather, are protecting their wealth from potential crises, using gold as a shield to prevent loss of purchasing power. You don’t need to read up on rare coins or special artifacts to invest in gold; you just buy a big lump of it.
6. Gold is Easy to Protect
We’ve all heard of the hellish situation which can ensue in the event that governments interfere with your funds. Government-controlled national agencies can freeze bank accounts, garnish wages, and even confiscate funds, all without warning and leaving people no way to access their money. These events are even more likely during financial or economic crises when ruling bodies can be aggressive in their actions.
Those with large amounts of wealth to protect may struggle to prevent these measures, however, there are a few methods you can use. One of these is the purchase and holding of physical gold, offshore, where no one else can touch it. Dealing with international banks might seem overcomplicated, however, it’s surprisingly easy to store your gold outside your home. Keeping your wealth in the form of gold outside of governmental jurisdiction gives you a fail-safe in the event of a financial crash, so you can access value-assured currency in the form of gold.
7. Gold is a Safe Bet in Times of Crisis
Gold is known as a safe haven asset, meaning it can really help you out in a financially challenging situation. In times of war and conflict, a lot of your assets may have a counterparty risk, where fiat currency can be unreliable. However, physical gold offers a safe haven in times like this, with a healthy supply you’ll never need to worry about cash flow. Additionally, gold can even offer profit in times of crisis. Usually, physical gold serves as a backup, relied upon not to lose value, and to defend your hard-earned wealth. However, during certain periods of economic unrest, gold prices can rise, which makes sure your safe haven stays in the green.
Many of the smartest investors turn to gold in uncertain times. Even if you never use it, having a stock of physical gold could save you from certain financial ruin. Global crises often cause a lot of economic problems that could affect your wealth stored in bank accounts and digital currency. But as gold mining was recently declared an essential service, the industry of physical gold continues as a reliable safe haven throughout any disaster.
8. Gold Can Be a Completely Independent Asset
A global financial depression is on the horizon, and it’s impossible to be sure that your bank accounts, trust funds, paper money, and other fiat currency will be safe. However, physical gold exists entirely outside of the modern-day banking system, one of the few assets that can’t be affected by outside events. Gold is not issued by any bank or authority, therefore government interference is not possible. If you store your gold in a bank vault, then, of course, this doesn’t apply, but any privately owned storage facility, including your own home, can ensure this form of wealth stays completely independent from any authority.
Without a default risk, physical gold cannot go bankrupt or dissolve. This precious metal retains its value no matter the situation, as it’s not connected to a government, bank, or organization. You don’t need to trust or rely upon any authority to look after your hard-earned money; store it in the form of gold for complete independence and financial protection.
9. Gold is Usually in High Demand, as a Limited Resource with Great Value
Gold is a finite resource, with intrinsic value, rather than a flimsy piece of paper assigned value by some governing body. Where you can easily print more paper money, or digitally create fiat currency from thin air, physical gold’s value comes from its own uses and scarcity. The general global demand for gold is always high, for its uses in circuits and other electronics. Gold as a precious metal also has a great many features which make it valuable to us, as well as it’s financial worth.
You’ll never need to worry that your gold supply will lose value or become irrelevant, unlike paper money. There will always be a demand for gold across the world, so you will always be able to convert your gold investment into a reliable money supply, should the need arise. This could be because of a global financial crisis, or just because you want to buy a new car; either way, physical gold stocks can easily become liquid cash whenever you need them.
10. Gold is a Great Hedge for Your Investment Portfolio
If you’re worried about the next Wall Street crash or stock market disaster, you’re definitely not alone. This is a fantastic reason to consider a gold investment. Historical market crash data shows that more often than not, the value of gold can rise during these times of financial crisis. Your other stocks and bonds, US dollar or otherwise, may suffer in these times, however, a gold supply will fill out your investment portfolio and serve as a hedge for other losses.
Gold investors are some of the few who could emerge from a market crash unscathed, while those relying on fiat currency face massive financial issues. The financial markets of the world are fragile, a fact investors know all too well, so use the gold market to create a buffer zone around the greater part of your portfolio.
11. Gold is an Ideal Long-Term Investment
An investment in gold is not only a way to protect your money, but it’s also a fantastic way to generate profit in the long term. We’re talking decades here; there’s very little money to be made in a short-term gold selloff, however, it’s an ideal gift of wealth to future generations. Fiat currency only ever falls in value, whether due to inflation or financial market instability, but gold rarely carries these issues. As a limited material, there can be no oversupply resulting in a price drop, so gold prices remain steady almost always.
In the global financial crisis of 2008, many feared the collapse of the Euro and the US Dollar. It was an incredibly turbulent time for the stock market. However, during this time, the demand for gold coins, bars, and bullion only rose, showing that you can trust in your gold supply to support you through financial uncertainty. Not only that, but gold investors can profit from their smart decisions while fiat currency plummets.
12. Central Banks Hold Gold Reserves
While central banks and government bodies around the world encourage deep investments into fiat currency, they’re quietly hoarding their own gold reserves. One such example to the Federal Reserve of New York. This is a clear sign that governments are not taking their own advice, using gold to protect their own interests while encouraging you to risk yours in their favor. Almost every government, bank, and federal reserve in the world will hold its own supply of gold bars and bullion in a vault somewhere.
This is a clear indicator that independent investors need to do the same, instead of risking their wealth on paper money and changing interest rates. Follow the example of authority around the world by protecting your wealth with your own gold stash, so no matter the disaster you’ll be prepared with a reliable money supply.
When stock markets, real estate investments, and fiat money across the globe becomes unreliable, you can turn to your physical gold supply to support you financially. There are hundreds of excellent reasons you should invest in the gold market, and you’ve learned about twelve of the most important today. From offering an economically prosperous future to your children and grandchildren to shielding your wealth from a potential financial crash, investing in gold bullion is an intelligent idea.
As one of the only private and independent assets you can attain, physical gold can offer a safe haven when fiat currency fails. Instead of listening to the voice of central banks and government organizations, who tell you to invest your life into paper currency, follow their example by creating your own personal gold reserve. As a precious metal that is always in high demand, there’s no chance of losing out by making a gold investment. Turning physical gold into cash is quick and easy, and you’ll never have to worry about freezing bank accounts or declining interest rates.
Unlike other potential investments that exist outside of the banking system, such as precious gems and rare and expensive art, gold requires no specialized knowledge or certificate of authenticity. You don’t need to rely on a middle man to verify or deliver; buying physical gold is simple and almost impossible to get wrong. From all of our reasoning, you can see now why gold is such a smart investment. Make the most of all these benefits, and buy gold to protect your financial interests today.