Reflecting on the history of humanity, gold has always prevailed as a financial hero. Whether used for saving or investing, gold consistently proves its wealth preservation capabilities.
In this article, we’re going to explore 10 reasons why you need to invest in gold.
When investing in gold, there is no third-party involvement if you’re buying gold directly from a reputable gold investment dealer. Therefore, wealth in the form of gold bullion can be held and stored anonymously. This allows you to independently secure your retirement investments.
If you haven’t already, here’s why you need to invest in gold bullion today:
10 Reasons Why You Need to Invest in Gold Bullion Now
1. Gold is a Tangible Asset with Innate Value
Physical gold is real. It’s tangible and indestructible. Compared to paper currency, gold bullion is impossible to artificially create and extremely difficult to counterfeit.
Mining physical gold is a costly, time consuming, rigorous process. For this reason, gold is a treasured asset with innate value, and is prized for being a timeless investment.
Because paper money is printed from thin air, paper money, in contrast to gold, has zero innate value. This is the sole reason why gold has always held its value when paper currencies collapse.
2. Gold Cannot Be Degraded or Devalued
Due to its independent characteristics and unique features, gold cannot be degraded. Gold is generally safe from government scrutiny and political interference.
We invite you to compare this to paper fiat currency. Paper currency is constantly devalued, degraded, and even destroyed by government spending, corporate bailouts, and quantitative easing.
Also, on a survival preparedness note, the average gold investment has outlasted all paper currencies by hundreds, if not thousands of years.
3. Long- Term Hedge Against Inflation
For centuries, gold bullion has retained its purchasing power over time, thus making it a safe haven in times of inflation.
Gold’s ability to hold purchasing power is often referred as “The Golden Constant.” This reference mirrors the fact that gold remains constant over extended periods of time.
This “constant” occurs because the price of gold self-adjusts to current inflation rates and future inflation predictions.
As a result, buying gold provides a long-term hedge against inflation.
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4. Offers Anonymous AND Portable Wealth
Gold bars and coins combine high portability with high value. In times of war and global turmoil, gold bullion offers the perfect solution for moving savings and physical assets across country borders or through areas of conflict.
Best part is gold can accomplish this anonymously. When you own gold, no personal information is stored or attached to it.
Therefore, investing in gold provides the most portable and private wealth-protecting asset you could ever own.
5. Outside the Banking System AND Independent of the Stock Market
Ironically, in our current era of economic uncertainty, the stock market is at an all-time high. However, what goes up must come down. And when it comes down, we may experience the worst stock market crash in history.
Gold is one of the few assets (like bitcoin and cryptocurrencies) independent of the stock market and banking system. It is not issued by any governments, central banks, or monetary authorities.
Physical gold, if owned and stored in a non-bank safe or investment vault, is immune to central bank corruption and manipulation. It is also independent of the stock market. So even when the market crashes, you will still have your gold investment.
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6. Buying Gold Provides a Significant Currency Hedge
As you can see on the chart below, there’s an inverse correlation between the price of gold and the value of the US dollar:
Image source: Market Realist
The price of gold tends to move in opposition to the US dollar. Therefore, buying gold can provide a significant hedge against paper currency.
This helps diversify your investment portfolio while reducing the risk of investments that rely on the health of the US dollar.
7. Provides All the Benefits a Gold-Backed ETF Doesn’t
Although gold-backed Exchange Traded Funds (ETFs) are exposed to the price of gold, they’re not the same as physical gold.
Unfortunately, most gold-backed ETFs don’t allow you to convert their units into gold. In many cases, physical locations of gold-backed ETF storage vaults are not disclosed.
Additionally, gold-backed ETFs are weighed down by third-party risks, such as custodians, trustees, and sponsors or issuers. Physical gold is independent and thus carries no third-party risks.
When you invest in gold bullion, you always have 100% control of the physical gold you own.
8. Physical Gold is Sold by Physical Weight
Physical gold is sold by physical weight, not according a number pre-determined by central banks or politicians.
Whether you purchase a 10 ounce gold bar or 10 one-ounce American eagle coins, you’ll always have the exact weight you originally purchased. And that exact weight never depends on paper fiat currency fluctuations.
Basically, when buying gold, the weight you buy is the weight you will always own.
9. Gold as Collateral for Loans
Your gold investment can be used as collateral for loans. Gold bullion can be lent and borrowed. You could even create a personal financing institution.
It can also be utilized as a method of generating interest, earning you passive income every time you borrow or issue a loan to someone.
10. Gold for Children and Family Inheritance
Gold bars and coins can serve as a reliable form of inheritance for your surviving children and family.
Gold is tangible and carries a valuable trading market. For this reason, it’s an essential asset for inter-generational wealth transfers.
Because gold is bought and sold by weight, it can be distributed equally. It can also be divided by specification in wills and trusts.
Here’s How to Invest in Gold Bullion
When you invest in gold you can hold, you’ll enjoy the benefits of a tried and true method of wealth preservation. Gold offers financial comfort and investment security, especially during times of economic distress.
In conclusion, gold has undoubtedly prevailed as a financial hero. Now, the question is… Are you ready to let the financial hero save your retirement assets?