We usuallyhear a lot about gold in times of economic crisis, because this metal isconsidered a safe haven. But many people use this term without reallyunderstanding its definition. For we too of…
We usuallyhear a lot about gold in times of economic crisis, because this metal isconsidered a safe haven. But many people use this term without reallyunderstanding its definition. For we too often forget that gold is much morethan just raw material for almost thousands of years this is the best way tostore wealth. The first coins used by humans were obviously gold and in someparts of the world it is still possible to pay in gold.
Because goldhas a huge advantage over fiat currencies is that it has an intrinsic value.The paper currency that is normally used as the dollar or the euro derives itsvalue from the promise of the state that issues them. But this value isvariable, it depends mainly on the money supply in circulation. More stateemits ticket and the value of the currency down. As a result, your purchasingpower decrease and you lose money while the money available on your bankeraccount has not diminished, this is the way that states are pumping your wealth.For as gold is against a first value that has its own value, the market priceincreases gradually as the currency depreciates, it is the best way to fightthe vampires of the economy.
But gold hasanother distinct advantage, as its value is not tied to fiat currencies, buyinggold, you effectively save your savings all the economic turmoil or financialcrises. And this is why it is important to have gold in your investmentportfolio. This way even if all the economy collapses, you will have a goodthat can be exchanged against goods or services. And the same principle worksin any parts of the world. All cultures and civilizations have always placed ahigh market value of gold. So as prevention is better cure, invest some of yourmoney in precious metals and you will parish all situations.
Now that youunderstand why it is important to invest in precious metals, you will surelyask how to invest. Firstly if you invest in precious metals to protect yourselffrom a huge financial crisis, it is essential to buy physical gold and do notstore it in the bank. Then if you’re wondering what to buy, I’d say it dependson the capital you need to place. The ingots have the advantage of representingare much larger, and therefore more practical for large investment. By consparts are much easier to carry and sell. If you ever need to use a small amountof gold to buy goods, the parts will be more practical.
But as youwill soon understand, invest some of your savings in gold, is only thebeginning of the process. The most important is to learn to make the rightchoices at the right time and that the only solution is to increase yourfinancial education.
Article Tags: Precious Metals