People are finding new ways to invest these days. With the rapid change in the economy all around the world, it is not a question why we should invest our money. There are quite a number of ways to invest. But the trend these days is to invest in gold. Now you may wonder why to invest in gold instead of cash.
If we look back in our history, gold was the first form of money. And still, this remains as the safest financial asset. To protect your purchasing power and wealth, investing in gold is the best choice. Hard assets like real-estate or land, gold is very low maintenance. It cannot be destroyed and there’s no property tax to think of. Every investor should think about this. Allocate a portion to physical gold.
Why Choose Gold over Cash?
Gold has a low chance of being counterfeited. Aside from that, Gold cannot be printed by a central bank or the government. Now you must take this into consideration since governments are in deep debt, all around the world. They have to pay back their creditors and they will be forced to print more money. This will reduce the value of the current currency that is being circulated.
After a couple of years, inflation will reduce the value of our money; thus destroy our savings. This is why investors are encouraged to choose gold over cash to protect their wealth. Unlike paper money, the value of gold increases over time. Imagine this, from 1980 up to the present, the value of gold has increased over 800%. If you have the same value of cash in 1980, to this period your cash will worth less than half.
Gold is not affected by geopolitical and economic stability. These two factors have great effects in regular currencies as well as traditional investments like stocks or real estate. Precious metals like gold have the tendency to increase its value when everything else crashes.
There are three ways to buy gold. Investors buy physical metal, gold exchange funds, and also mining stocks. Physical gold is the best among the three. Investors can buy either gold bars or coins. If you are planning to go big with your investment, choose gold bars. They have lower premium compared to coins. You can stack them easily and is best for long-term investments. On the other hand, if you are short of upfront money, buy gold coins. This would be the best option. It is easy to transport and has the high probability to be marked up for design.