Monday, April 21, 2014, PM | Leave Comment
Gold has been used as a currency for thousands of years; it’s been an important part of cultures and economies since gold coins first appeared around 800 B.C.
Throughout time, people have cherished gold because its such a good investment. Gold is a precious metal that has never historically lost value, and smart investors collect it for a variety of reasons.
If you’re looking for a stable investment, you should consider gold for the following reasons:
It Holds Its Value
Unlike paper money, gold has never gone down in value. People look at gold as a way to hand down their wealth from one generation to another. Today, the U.S. dollar is a very important currency, but that doesn’t mean that its price doesn’t fluctuate regularly.
Between 1998 and 2008 the value of the U.S. dollar fell. When this happened, people flocked to gold reserves as a hedge against inflation. During this time, the price of gold tripled; if this happens again, people with gold reserves will be immune to the fluctuation.
Gold prices tend to rise in correlation to inflation. When goods get more expensive, gold prices mirror the change. When you buy gold, you protect yourself in the future. If you hold all of your savings in paper currency, inflation can quickly make it worthless. Imagine having your retirement account made worthless by hyperinflation; with gold, you don’t have to worry about the price of paper currency.
It’s Always In Demand
Gold is tied into the technology sector. Many circuit boards and microprocessors need gold to work. This includes various technologies that are available to produce precision parts. When you invest in gold, you know that it’ll always be in demand because of its use in technology. When gold is in demand, its price won’t fall. Gold is used in all the latest computer and chip technology, so you can be sure that its demand won’t go away.
Gold is a finite resource, and it hits the market after gold bullion is sold from the reserve of central banks. It takes about five to ten years for gold to hit the market after it has been mined. This means that gold investors never have to worry about a flood of gold hitting the market. When gold doesn’t flood the market, demand remains high; this means that the price stays high as well.
Gold should be an important part of everyone’s investment portfolio. It’s a great way to diversify, hedge against inflation and invest in modern technology.
When you buy gold, you buy something that has maintained its value for thousands of years. Unlike paper money, gold is going to be around forever, so it’s definitely an investment worth considering.Facebook.com/doable.finance