Why Invest In Gold & Precious Metals

The History Of Gold

The first gold coins can date back to 650 B.C. This shows how long gold has been around and the rich history that gold has. For gold to maintain its value from 650 B.C. and possibly before is amazing. Gold and other precious metals have been held for decades by people or countries to protect them against hard times just in case other forms of currency become devalued. When individuals hold gold, this increases its value tremendously. Gold is one of the only currencies that can withstand an economic recession.

Good Reasons For Investing In Gold & Precious Metals

There are many different reasons why people are investing in gold and precious metals. Individuals invest in gold because it always maintains its value and it is a defense against inflation. If the dollar ever comes devalued, individuals will still have a valuable currency. Investing in gold protects individuals from any type of deflation. The demand for gold has increased over the years and investing in gold allows for investment portfolio diversification. You should look into precious metals IRA companies if you want professional help.

Gold Maintaining Its Value- Gold is not like any paper money because it always keeps its value. Individuals use gold as a way to preserve generational wealth and pass it down to their offspring.

Defense Against Inflation- It is well noted that gold has been one of the best hedges against inflation throughout history. Investors have seen the price of gold increase when there is a downturn in the stock market. When the cost of living goes up, the cost of gold goes up simultaneously.

The Devalued Dollar – We have seen how the American dollar lost some of its value during 1998 and 2008. Individuals went into debt over stock market losses and over-leveraging of real estate assets. This experience taught Americans a lesson and more people started to invest more in gold. From 1998 to 2008, gold was $1,000 per ounce and doubled to $2,000 per ounce between 2008 and 2012.

Protection Against Deflation – When an economy is burdened with extreme debt, prices decrease, and businesses stop thriving, this is considered deflation. This occurred on a small level during the financial recession in 2008 and occurred globally during the Great Depression. Gold never loses its value and is something that is used to combat deflation.

The Increasing Demand Of Gold – Another good reason for individuals to invest in gold is that the demand is increasing globally. The Chinese and people of India are heavily invested in the use of gold. An example of how the Chinese use gold is as a form of saving. In India, it is used for jewelry making and at weddings. In the United States, there has also been an increased demand among investors when it comes to gold. One of the most popular ETFs utilized in the United States by gold investors is SPDR Gold Trust.

Investment Portfolio Diversification – Investors use gold to help diversify their investment portfolio because it is a different type of investment than stocks. If an investor has stocks, they usually invest in gold because this helps reduce the volatility that can happen in the stock market.

The Best Ways To Invest In Gold

One of the best ways that an individual can invest in gold is by purchasing gold coins or gold bars. If an individual owns gold coins or gold bars they must be sure that they are stored in a secure place such as a safe deposit box in a bank. Another way that an individual can successfully invest in gold is by investing in gold mutual funds and ETFs. Individuals also can invest in gold mining companies or just buy and store a lot of gold jewelry.

Gold has always been a precious metal that individuals and countries have valued throughout the beginning of time. In situations such as the Great Depression and the recession in 2008, the value of gold has increased in the United States and globally. Whether it be bars, mutual funds, or ETFs, an investment in gold is an excellent investment to protect individuals from losing everything if the stock market crashes.

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