Even if gold has always occupied an exceptional place in the economic history of the world, there are many reasons why numerous gold investors and analysts are focused on gold. The reason behind it is that the gold value is off to its good start this 2016 since year 1974.
While several young analysts who haven’t seen tough markets often ignore the significance of gold holdings, the comments of experts show the errors in such an attitude. There are many reasons why people must invest in gold this year and these include:
Store of Wealth
For about six millennia, the gold is always valued as money as well as a store of wealth. In the last century, the government moved away from silver and gold backing the dollar. Today, fiat paper monetary system is being used. But, gold remained as the most effective store of richness and dollars decline annually.
Protection against Government Debt
For the last decade, the government continued to push the debt ceiling much higher. This debt causes the dollar to decline due to the reason that the American people are losing confidence in their ability to pay back such debts. Because of this, they purchase gold whenever they need protection against government debt.
It’s an increase in the prices and decline in buying of money. For instance, until year 1933, a $20 gold coin and $20 bill have the same value. Those years will let you purchase a brand new suit. But today, a $20 bill won’t allow anyone to purchase any kind of suit because it isn’t backed by gold. In addition to that, a $20 gold coin is worth $1200 at present, which will allow you to purchase an expensive tailored suit.
Gold Protects Against Bail-in
In many cases, when bail-in happens, such governments don’t seize physical assets, they only seize the paper assets. The perfect way to give yourself protection when a bail-in occurs is to have some money in physical assets. As a solution, having precious metals like gold can make a difference since they’re a hedge against a bail-in and stock market crashes.
Countless Investment Benefits
Owning some precious metals provides investors particular investment benefits. No asset classes offer all these investment benefits and such advantages include privacy, growth, protecting their retirements, liquidity, diversification, certainty during uncertain times, and ability in passing down wealth privately to the heirs.
Now that you know the reasons why you should invest in gold today, it is the best time to look for the best gold dealer that will take care of your investment and will provide you the best that you deserve. Just make sure to rely only the finest one likeDurham Precious Metals because it can make a huge difference in growing your investment. So, make a move at the soonest time possible and don’t miss all the perks that you will get once you take advantage of investing in gold.