In a world full of fiat currencies, gold is real money; it’s a life insurance.
Gold can be classified in three ways. It can be considered as an asset, a commodity, or as money. Gold does exhibit characteristics of both assets and commodities, but ultimately, gold is money. If one wants money and wants to survive the massive economic failure that is destined to come, buy, and hold gold. The world has never been awash in more debt than it is now, and that growing debt cannot be sustained, and only gold can save it.
Gold – An Excellent Investment
Although it’s not a primary form of currency within the developed world, gold remains a preferred investment for a variety of reasons.
1. Liquidity: Gold can be easily converted into cash anywhere in the world. Aside from actual money, the liquidity and universality of gold are unparalleled.
2. Holds its value: Gold tends to maintain its value over time. Economists argue that even the worth of gold isn’t indicative of its value.
3. Hedge against inflation: Gold rises in value when inflation takes hold. Since gold is priced in U.S. dollars, any deterioration within the dollar will logically result in a better price of gold. As a result, during inflationary times, gold offers a way more stable investment than cash.
4. Diversification: Adding different securities to your portfolio is an essential way to diversify and lower the overall risk of your finances. Moreover, because gold often moves inversely to the stock exchange and currency values, it provides a uniquely useful approach to diversify.
5. Universally desired investment: Gold is still a universal commodity. Although countries sell their currency futures, treasuries, and other securities around the world, unlike gold, they’re subject to political chaos.
6. Gold is used as an input in products: Since gold is used in the production of various products, including jewelry and electronics, there is a strong demand that further stabilizes the price of gold. Moreover, in times of increased demand, these markets can force the worth of gold higher.
When is the best time to save in gold?
The best time to invest in gold is when inflation is predicted to take hold and force down the worth of the national currency. The earlier you’ll be able to detect such drops, the more room you’ve got to generate a profit. When the local currency is robust and inflation isn’t expected, there’s not much room for the value of gold to rise. With that said, if there are expectations of increased demand from markets that need gold, like jewelry and electronics, consider investing in gold to make a profit from the potential price pressure.
Practically speaking, a buy-and-hold saving strategy may be best for a normal individual. Since economies tend to be cyclical, buy when the value of gold is down, whether or not your country is currently facing turmoil, or you think it’s headed for a few. In this way, you don’t need to worry about buying when everyone else is buying and driving the price up.
Gold can be a profitable investment when all others fail; therefore, saving in gold is a fruitful deal. While the waves of inflation move towards indebting economies, smart gold savers will shield themselves from unforeseen circumstances.