Why gold?
Why invest in gold?
Studying history and economics helps understand why wise investors should own some physical gold. Looking back, not only in the past 100 years – but in the last few years – times of increasing political, monetary and economic instability around the world have increased the demand for real financial security and diversification.
Gold - a unique safe haven
Gold provides the only safe haven for your investments that has stood the test of thousands of years.
Consider the desperate need for reserves or a “safety margin” for a rainy day. Now consider how vulnerable the global economy is with global debt levels at an all-time high.
In addition to meeting the need for reserves, gold offers unique interesting advantages and characteristics over stocks and real estate, which often move up or down with the economy. Gold is the ultimate safe haven asset
Physical gold is real money
Gold has been a valuable medium of exchange for thousands of years. The world is currently working on the global fiat currency model, although individuals, institutions and governments still use gold as money. Fiat money cannot provide a safe haven of value because it is a system created and maintained by governments.
Gold has pretty much outperformed all major fiat currencies over time. The dollar and other currencies can be easily manipulated and are highly vulnerable to currency devaluation.
Compared to government currencies, cryptocurrencies, or industrial metals such as copper and uranium, gold is the most exchangeable and small storage medium of value. It is the physical properties of gold and the global demand for the metal that enable this distinction.
Gold is time tested
Gold is the best way to secure your savings because it represents a value that people around the world know and trust.
When you insure a portion of your net worth in gold, you join billions of people throughout ancient and modern history who believe that gold is the most time-tested means of maintaining financial security.
Gold provides financial freedom
Gold offers the ability to do business outside of the banking sector, privately, in a trusted manner, almost anywhere in the world.
It is not part of a government-controlled financial system or a fiat currency, and it becomes more exchangeable when currencies and states fail.
In this way, investing in gold really completes your portfolio while at the same time giving you access to stored value whenever you want it.
Gold allows you to be your own bank
Withdrawals from the banking system, bailouts and bank failures are not the gold owner’s concern. You can buy and sell gold at your convenience and get paid only temporarily in fiat currency, if you wish. Assets protected by a fully insured vault stored in the most secure vault in the world.
Legacy and transfer of wealth between generations
Transferring your wealth to the next generation couldn’t be easier than with physical minerals.
It’s an ancient way of ensuring that heirs have a tangible store of value that isn’t a paper promise or tied to any government obligations or debts. Nobody wants investments they can’t get out of on a bad day.
10% higher return
Compared to stocks alone, investing $1,000 in a portfolio consisting of 75% stocks and 25% gold 50 years ago, with annual rebalancing, would have at least 10% higher return. And compared to a traditional 70/30 stock and bond portfolio, your total return will be up to 40% higher!
Plus less risk
The other great reason to add gold to your portfolio is its lower volatility, or less dramatic ups and downs. Gold is not correlated with the stock market, so when stocks go down, gold tends to go up.
Thus, a well-balanced portfolio of stocks and gold carries a much lower risk of a significant decline, as can be seen in the example of 2008.
By adding some gold to your portfolio, you can cut your long-term risks almost in half.
hedge against the market
Gold is the secret to building an investment portfolio that not only survives – but actually benefits from – market ups and downs.
If you invested $1,000 in the US stock market 50 years ago, with your dividend reinvestment, your money would have grown to approximately $87,654.
If you follow the normal financial advice and invest 75% in stocks and 25% in bonds, your portfolio will be less risky, but the returns will be about 20% lower. $1,000 invested 50 years ago with annual rebalancing of just $69,822.
The same $1,000 invested in a portfolio of 75% stocks and 25% gold 50 years ago, rebalancing annually to the same 75/25 ratio, would be worth more than $111,823.
Rebalancing forces “sell high” and “buy low” for each portfolio basket. Rebalancing across non-correlated assets such as stocks and gold creates a portfolio that actually benefits from market volatility!
Liquidity
Gold is unmatched globally in terms of liquidity. It can be exchanged for every currency in the world, a point regularly proven by leading investment funds, central banks and individuals.
Gold is also the most stable of the precious metals, and has performed well in both deflationary and inflationary times. By owning gold in your Gold Era account, you are in control of your money
The relationship between gold and the US dollar
There is an inverse relationship between the US dollar and gold, where when the value of the US dollar decreases, the value of gold increases, for example from the end of 2007 and the beginning of 2008 gold made its way above the levels of $1,000 per ounce (an ounce is a unit of measurement for gold against the US dollar and equals 31 .10 grams of pure gold) and also during the outbreak of the Corona virus, gold prices rose from levels of $1,500 per ounce to levels of $2,070 per ounce, and this year, when the Russian military operation in Ukraine began, gold also rose, according to this, gold prices rise when the value of The dollar during political events or problems that occur in the world
economic contraction
Bullion stands as a barrier to the contraction of the economy, even if the prices of goods and services decrease in general, bullion can retain its value, so it is one of the safest assets in the field of investment