Why Buying Gold Is Still A Good Investment Today?
Since the era of stock markets began, gold has been one of the most distinguished forms of an asset. However, to fully understand the purpose of this metal, one would need to dive further into its history and why it became a symbol of wealth.
The history of gold began in the ancient civilization of Egypt. Here is where crafting jewelry and artifacts first started. However, the first use of gold as a currency began around 560 BC. During this period, people, especially merchants, wanted to simplify the transaction method to produce money, thus creating the first gold coin with a seal.
After creating the first coin, the essence of gold spread and grew throughout the other continents, primarily Europe and the United Kingdom. Because of this event, the United Kingdom minted their first coin in 775 BC, the first-ever British pound. The British based their currency on the amount of gold and silver. Thus, gold gradually becomes an icon of wealth, royalty, and power in all parts of the world.
Power To Preserve Wealth
Like the past centuries, gold is still capable of preserving your wealth, making it still important even in today’s economy. However, it is not the case for paper bills, coins, and other assets. But the question is why?
People see gold as a valuable metal in ancient civilizations because of its physical properties. Unlike other metals, gold doesn’t rust easily, which allows the metal to be preserved for millennia. Also, it has a magnificent and unique color, making it aesthetically pleasing for everyone’s eyes.
That’s why even ordinary people invest in gold by purchasing jewelry. However, to ensure that the one you’re holding is authentic, make sure to buy only from a reputable jewelry store in Irvine or any other city you’re in.
Power Against U.S Dollar
The U.S dollar is one of the most potent and essential reserve currencies globally. However, between 1998 and 2008, the dollar currency fell against others, which raised the demand for gold and its prices. During this period, the prices of gold nearly tripled from USD $800 to USD $2,000.
The main reason gold benefits from the fall of the U.S dollar is that gold can only be purchased using the U.S dollar. Because of this, investors will use their dollars to buy gold instead, making the value of the U.S dollar lower than gold. Also, if the U.S dollar falls, investors who use different currencies will find gold as a cheap metal, making it easy for them to buy it.
That’s why it is more important from an economic perspective to invest more in gold that preserves assets than others. Unlike currencies, gold has proven to maintain its value over thousands of years.
Power To Protect You From Crisis
Nowadays, the entire world is in political and economic uncertainty. This makes the value of money doubtful for the years to come. Investors see gold as protecting their assets during political and economic uncertainty to escape this situation. History had proven this repeatedly, especially during the Great Depression of 1930, when economies collapsed.
During these periods, only people who invested in gold could protect their assets, which they could also use to survive the crisis. This is why investors always buy gold when they find a hint of economic uncertainty.
Power Of Gold Stocks Investments
Even if the gold stocks depend on the rise and fall of its price, investors are still eyeing gold’s growth capability. Additionally, even if the price of gold falls, some reputable mining companies can still profit from this, as every increase can result in significant returns. This return of investment proves to be much higher than those who invest in physical gold.
That’s why investors focusing on growth than income can benefit from the gold stocks’ dividend performance because these stocks can result in doubled revenue, significantly when the market is continuously rising, compared to non-paying dividend stocks.
All investments have advantages and disadvantages, and that includes gold.Additionally, gold is an essential factor in a diversified portfolio. Why? Because gold increases every time stocks, bonds, and the value of paper investments falls. However, like all investments, you should prepare to take risks, especially when the value of gold becomes volatile.
Furthermore, gold proves to preserve wealth for millennia. So, if you’re looking for the best way to protect your assets, especially during these political and economic uncertainties, it would be best to invest in gold gradually. If it’s tricky for you to buy and store physical gold, you may try other ways, such as investing in gold stocks, which often result in significant returns.