Gold is one of those precious metals that has stood steady, and its value has increased by several folds in the past years. Having a look at the price of Gold from mid-1973 when it was first legalized to own gold, you can see that there has never been a drop in the price. From 2006 to 2016, the price had increased more than three-fold even when the world was battling the economic crisis. Some of the top financial experts have given the important advice of saving for tomorrow with gold. It is the best and safest element that will protect the owner to combat harsh economic conditions.
Gold in History
The first findings of gold were in the streams, and it was one of the earliest metals known to man. Even though iron and copper metals had been responsible for bringing about significant changes to our world, gold was the earliest known one. The first use of gold was for adornment due to its brilliance, malleability and lustre. They have been linked to the royal class and deities of God since ages. Gold was valued and in high demand even before the monetary value of gold was determined, in the times of the kings when there was no money and coins to describe its value.
Later Gold and Silver bullion themselves were used as money. They were used to barter goods. At the times of Aristotle and Pluto, they described gold to be made of water and sunlight.
Gold-Tears of the Sun
Gold has been money for over 5000 years.
Even when currency values of several countries declined, gold value has always increased in exponential values.
In the situation of inflation, the monetary value may drop when the currency is overprinted.
Financial investments like bonds, funds and stocks fall steeply down the slope in such inflation conditions, while the amount of gold bullion and silver remains unaffected.
Hyperinflation and Gold Value
The economic situation of the world has not been balanced after the recent crisis. The currency value of all countries including the United States is dropping. Why does this happen? The main reason for this the excessive currency printing without supporting it with gold. The value of the money will go down and to prove their point, the country may go into increase the distribution which will create a condition of hyperinflation. Through ages, several countries have created this situation and finally had to back their currency with gold. When all other investments drop, the value of gold increases with a decrease in money value.
Reasons to invest in Gold
1. Finite supply of Gold: Gold has its use in various industries, and there is only a limited supply of gold available in the world. They are not like stocks or currency-based investments which increase the assets by increasing the printing. The gold reserves will drain out over time, and people who have caught on to this precious metal will be kings at that point. As the quantity of fresh gold supply decreases, the value will keep increasing as there is always a high demand for gold.
2. Steadily Increasing: There are several kinds of investments like property, funds, etc. But they have ups and downs. One day it might be on a high note and another day it might get too bad. Studying the value of the gold in the past years, there has never been a fall in gross value even though there have been some regular times. Last 10 years the rate of gold has increased by a peak on the graph.
3. International access: With the world coming closer each day, investing in gold will give you an international option. Holding a bond in your country cannot be cashed in another country. With gold bullion, you have a form of money which you can use in any country. Sometimes it is even more tempting as a gold coin may fetch you more money in another country.
4. Various kinds of Gold Investments: There are several types of gold investments like gold bullion, stocks and coins. Each has its pros and cons, and it is essential to know more about these before investing in gold.
5. Gold in high demand: Most investment kinds drop as their demand decreases. Gold is a precious metal and is always in demand. It is used highly as jewelry and also in several technical parts. The demand will always increase and will ensure that your investment in gold will never fall.
Kinds of Gold Investments
1. Gold Futures: Its is a rather risky but least expensive gold investment form. It works on complex calculations and is used by experienced gold traders with intricate detailing.
2. Junior Gold Stocks: This one is also one among the other risky gold investment forms. It involves the purchase of stocks from mines which are in the exploration stage and have a high loss chance. They require less capital than matured gold stocks.
3. Gold Mutual Funds: It means to invest gold through mutual funds. Senior gold stocks have a lower risk factor attached to it.
4. Gold Exchange Traded Funds: This is safer than gold stocks and is a new way of gold investment. They are gold stock backed by gold bullion. There ETF's have gold bullion as the assets.
5. Physical Gold: This is the safest and easiest form of gold investment. Over the ages gold coins and bullion have been the best form of investment. There are no complicated calculations involved, and however small your investment amount is, you can easily buy the gold bullion for that value from a reliable gold dealer.
Buying Physical Gold
Make sure that the gold you buy is pure and meets the world gold standard. In times of need, selling gold bullion is comparatively easier against all other forms of gold investments. There is always a value for gold, and the value of gold does not depreciate with age. When you sell gold, you get the current market price of gold. With physical gold, you do not have to be constantly looking at the NYSE. It is also an excellent way to save your retirement currencies and even pass on inheritance. The main reason for investing in gold is that there is no second thought required and no reason for why you should not invest in gold.
No comments:
Post a Comment