People have invested in gold for centuries, often using those investments to create incredible wealth. Whether you’re a soldier in ancient Greece or an average Joe in modern-day America, you’re aware that gold has some level of value.
Does it still hold up as a good investment, though? We’re going to take a look at the reasons that investing in gold is still a good idea today. Hopefully, the information below will give you a sense of how valuable gold can be and allow you to decide to invest if you see fit.
Let’s get started.
1. Gold Holds Value
The value of gold fluctuates from time to time, offering instances for investors to cash in and reap the reward of their investments. While things pop up and down, though, gold rarely depreciates in any significant way.
The major currencies of the world are all liable to plummet under the right conditions. Gold, on the other hand, has held a relatively high value for over 3,000 years.
That’s longer than any existing currency has been around if you exclude the bartering of goods and services as a currency. So, gold is a good investment if you’re looking to keep your money for the long haul.
Let’s say, for example, that you’re a billionaire. You’ve got key information that society will crumble a few years after your death. Even though you’ll be dead, you still want your family to have enough money to last for a few generations.
The smart thing to do would be to invest in gold. Your gold will hold strong while everything around crumbles. Further, that gold could be used in almost any country around the world and still hold value.
2. Gold Stores Valuable
Try to think of another asset that can’t be destroyed by almost anything. Time can lay waste to most forms of currency or investments available today. A home will eventually crumble, money will wear down into scraps, and your livestock will pass away one day.
Gold, on the other hand, has almost no vulnerabilities. The only thing you could do to gold to change its form is to melt it. While gold doesn’t offer too much opportunity for growth, it holds one of the best ways to maintain wealth for as long as you’d like it to.
Sure, there is an expiration date on gold. Time runs through everything eventually. That expiration date will come to pass long after our grandchildren’s grandchildren are born, however.
Even banks aren’t as reliable as gold. The money held in a bank is vulnerable to a degree. On a short-term scale, your money is likely safe in the bank. When you stretch things out to periods of hundreds of years, though, that money becomes very vulnerable to the shifting tides of the economy.
Instead of holding your money in the bank, buy gold bars and ensure that it stays where it’s meant to be.
3. Gold Stands Alone
The thing about most currencies is that they involve a sort of voluntary engagement with a middleman. The piece of paper with “$100” stamped on it isn’t the thing that holds real value.
That bill is representative of a particular value in the context of the nation’s wealth. Further, the value stamped on the bill is relative to that nation’s wealth. A hundred-dollar bill might get you a full set of groceries today, but it would have once bought you a lot more.
Inflation and deflation are things that occur whether we like them or not. Our only influence over those things is the way we vote, which often seems like a small drop in a big bucket.
You could stockpile thousands of dollars, only to find that the value of those dollars crumbles when the country is struggling. There’s no guarantee that the currency will deflate and bring your value back.
On the other hand, gold stands by itself as a valuable object with no middleman. Gold contains the value, and it’s not relative to anything else. Sure, there is a value set on gold that changes slightly, but that fluctuation is arbitrary when you look at how consistent gold’s value tends to remain.
The value of gold isn’t going to fall on you, and few other options could say the same thing.
4. Gold is Private
Physical gold holds no financial trails, informs nobody, and keeps to itself. There’s a lot to be said about keeping your finances private in this day and age.
Most of our bank accounts, transactions, and dealing with others have some form of surveillance or monitoring attached to them. Even though there’s little risk to the average person, that surveillance still feels intrusive.
Why does some unnamed, unfaced corporation have to have insights into how you live your life? Further, what are they doing looking at your money?
You can own a significant amount of gold without having anyone know about it. There are required taxes that you have to pay on the gains you make from an investment in gold, but that’s about it. There are no account numbers, balances, insights, data analytics, or anything else that you couldn’t find 3,000 years ago.
Instead, you’ve got a solid and reliable gold brick. It’s one of the most reliable portfolio diversification methods you could ever incorporate. The smart investor is a gold investor in one way or another.
There’s a lot of variety in the gold investment department as well. You can invest in different types of gold, use gold in different strategies, and a whole lot more.
Want to Learn More About Investing in Gold?
If investing in gold sounds interesting to you, there’s much more to learn about the process. You can make physical gold purchases into very lucrative investments. We’re here to help you with more information if you’re looking to start investing.
Explore our site for ideas on ways to diversify your portfolio, purchase gold, and other ideas on how to build wealth.