Gold was considered a universal currency for hundreds of years. Due to its recognized value worldwide, a gold standard was used as far back as the Byzantine Empire over 1,500 years ago. Until recently, in fact, gold was used as the world reserve currency. Gold investment is still important in the global economy and an early look at that could fulfill dreams. When it comes to saving a portion of earnings, an error we most likely make is to put our wealth in man-made currencies. These currencies are controlled by central planners, regularly manipulated, and created out of thin air without regard for the value of the currency we have in our wallet.
In this digital age, accounts holding these currencies can be frozen and easily confiscated, and tracked. From research, saving in gold or other precious metals like silver, palladium, or platinum could be a wise alternative.
Let’s take a look at these simple truths:
- Lawsuit proof – Figuratively, but the fact is no one knows how much gold you have, it is a private matter. Gold is “off the books” when it comes to financial accounting.
- A history of being money – an independent unit of account that is the same no matter where it was mined or how old it is. It is a constant measurement of value, you can take a gold piece anywhere in the world and have it valued. This is much different than a fiat currency, once outside of your nation’s borders, a currency may not be generally accepted. You also have thousands of fiat currencies that no longer have any value.
- It can’t go to zero – Zero value for gold isn’t an option, hasn’t ever happened and never will. The process to get a 1-ounce gold coin to you has hundreds of man hours behind it, maybe even thousands if you consider the full operation of gold exploration, production, refinement, and delivery. This is the entire point of saving your wealth, you save to not lose. I understand that you can measure gold vs. the dollar, or gold vs. oil, and that its price will fluctuate, but the value in gold itself does not change.
- The central banks are hoarding it – When the most powerful group of people in the world, the central bankers, desire to have Gold asset, then that alone should get your attention. Central banks who print the currencies that the masses treat as a store of value, these very central banks buy and store physical gold, not silver, not houses, not oil, they own gold! If it is good enough for the masters of this world, then it’s good enough for me.
- Financial insurance – When it all hits the roof, be it a government or economic collapse, at the end of the day, gold survives. It still has value in the new world. It also makes for a great “start over fund” for the reasons listed above.
- Mobile – You would agree it is important that if we need to, we could easily carry or move our wealth to a different region. Just to give you an idea, $200,000 in gold is about the size of a VHS tape. Our fiat currencies are typically tied up over the weekend and on bank holidays; in fact, even if we wanted to physically get our cash, we couldn’t. That is unless the bank is given a notice in some cases not less than 72 hours depending on the amount to withdraw.
- Liquidity – Gold can be easily converted into cash anywhere in the world. Aside from actual cash, the liquidity and universality of gold is unparalleled.
- Legacy wealth – Gold is something you can safely store away knowing that it is something of great value. You can pass on to your children and your children’s children. It is a safe stash of value that you can tap into when you are in your “golden” years.
Ultimately when you are saving a portion of your earnings, you want to protect and preserve it. Gold, along with the other precious metals, the best way to achieve the objective of saving money by preserving its value from government and civil litigation.
How to initiate a Gold investment
Investing your man-made currency into gold has many options:
- Buy gold directly – You can buy gold directly in the form of bullions or coins. You will then hold onto physical quantities of gold, which can be sold at a later date. It can feel good to have gold actually in your possession, but you need to be careful with it. The biggest downside is that you will have to pay to have it insured or stored.
- Buy shares in a gold company – You can also purchase stock in a company that produces gold. The value of the stock is going to be strongly correlated with the value of gold itself. You may also be paid dividends on your shares.
- Gold futures and options – You can invest in gold through financial derivatives that specialize in gold investments like the Call and Put options. A call is appropriate if you expect the value of gold to increase. On the other hand, you’d purchase a put if you expect the price of gold to drop. Like other derivatives, gold options and futures are risky; you have the potential to earn high returns or incur huge losses.
- Invest in a gold ETF – A gold ETF is an exchange-traded fund that specializes in investing in a range of gold securities. Such diversification can somewhat minimize your risk.
Historically, gold has played a major role in the economies of many nations. Although it is no longer a primary form of currency, gold is still a solid, long-term investment and may be a valuable portfolio addition, particularly in a bear market. So consider investing in a gold business today and increase the value of your assets. You can also learn how to grow your money here.