Gold has long been coveted for its beauty, strength and value by people groups from all around the world. Many of today's investors tend to acquire this precious metal for several different reasons. In the changing political climate, many individuals are concerned about their retirement savings.
Have you been wondering about whether it is smart to invest in gold these days? Perhaps you are concerned about whether gold will retain its value down the road.
Here are our top 10 reasons to invest in gold and why.
Table of contents
- 1 1. Currencies May Fail but Gold Remains Profitable
- 2 2. Gold Is Considered a Tangible Asset
- 3 3. Buying Gold Can Help Ensure Your Retirement Comfort
- 4 4. Governments and Top-Rated Institutions Buy Gold
- 5 5. Gold Is Considered a Protective Hedge Against Future Inflation
- 6 6. Global Government Debt Keeps Rising Making Markets Unstable
- 7 7. The Demand for Gold Is Increasing but Global Gold Supply Is Shrinking
- 8 8. Gold Is Considered a Liquid Asset That Can Be Sold Swiftly
- 9 9. Buying Gold Is Simple and Does Not Require Any Special Skills
- 10 10. Gold Is Considered Confidential and Private
- 11 Conclusion
1. Currencies May Fail but Gold Remains Profitable
History Has Proven That Currencies & Governments Rise & Fall
Throughout history, governments have risen and fallen due to politics, war and many other reasons. Even in today's modern societies, the currency used throughout the world is shaky and continues to decline in value over time.
The Value of the Dollar Here in the U.S. Continues to Decline
Even here in the United States, the value of the dollar is continuing to decline, but the government debt keeps rising above what taxpayers can pay. This certainly causes concern over what amount our future retirement and other savings will be worth when it comes time to retire and live comfortably in the so-called golden years. For this reason we recommend you read our gold IRA company guide.
Gold Remains Profitable & History Agrees
Wars and other serious threats to our country can arise with little warning if any. Gold remains a profitable asset, and history seems to agree. Gold is portable, and it can be carried if there is a reason to relocate. During wars and uncertain times, the safest assets tend to be precious gemstones and gold.
2. Gold Is Considered a Tangible Asset
Gold is a physical asset that can be held in your hand and does not need any special tending to remain valuable over time. Gold is considered a tangible asset that historically has remained valuable even when disasters strike.
Gold Can Be Carried & Is Portable
If your family suddenly needs to relocate, it is good to know that your gold can be easily taken with you.
Gold Is Simple and Easy to Store
Other valuable assets need proper specialized care to retain their good conditions and subsequent value over decades and even centuries. Precious jewels, fine art and other types of valuable property needs specialized care and can require a larger and climate-controlled environment that is considered safe.
Gold requires none of these care factors and does not need any special care in the way that famous paintings and fragile antiques or artworks do.
3. Buying Gold Can Help Ensure Your Retirement Comfort
Some individuals try to increase their retirement savings by purchasing stocks and bonds that they hope will grow over time to create a nice financial egg nest. They expect that this nest egg will allow them to lead comfortable lives after they retire from their work. This can be risky, because stocks can drop in value swiftly and without warning in many cases. Gold, like silver will most likely hold its value, read our silver IRA company guide to learn more.
More Investors Are Purchasing Gold for Retirement Savings
It is smart to invest in gold to increase your current retirement plans and savings. This is an investment that is expected to retain its value and is easy to buy and sell when desired.
As the costs of living keep rising, it is important to enhance your savings and prepare for the future. Gold can be an excellent solution to inflation and other detrimental processes that can leave your retirement plans in shambles. Most investment experts strongly urge clients to invest in gold.
4. Governments and Top-Rated Institutions Buy Gold
Investors pay attention to what the governments and top-rated institutions are buying to keep their assets valuable. Governments that buy gold tend to be wealthier than those who do not. Banks and other profitable finance institutes are also now investing more in gold. This is because gold tends to remain valuable despite any current finance disasters.
5. Gold Is Considered a Protective Hedge Against Future Inflation
Inflation is a real threat to our lifestyles and wealth over the years. As inflation rises, the value of a country's currency tends to fall rapidly. Sadly, it can be a long time, if ever, before the currency gets back to its original worth.
Protect Against Inflation by Purchasing Gold
One terrific way to help provide a protective hedge against future inflation is to buy gold. This valuable commodity offers a more secure finance portfolio. Do not be caught unaware of rising costs of inflation that can wipe out your retirement savings in a very short time period.
6. Global Government Debt Keeps Rising Making Markets Unstable
Many governments around the globe have enormous debt that keeps their citizens living in poverty with little food and other signs of wealth and stability. Even here in the United States, our government debt keeps rising every day. Many fear what tomorrow will hold by way of financial stability.
The uncertainty of government debt helps to drive markets down and creates an unstable market that can spell future financial disaster. This is just one more crucial reason to invest in tangible wealth like gold.
7. The Demand for Gold Is Increasing but Global Gold Supply Is Shrinking
Gold is a physical form of wealth that is fairly stable in the marketplace both in past years and today. Many financial experts claim that the demand for more gold is increasing, but the global supply of gold is simply shrinking posing a real challenge.
Mining Gold Has Become More Difficult & Costs of Mining Gold Continues to Skyrocket
In previous decades and centuries, when the demand for gold rose, business leaders turned towards companies that mined this precious metal from the deep underground caverns where gold is located. That dependable source for gold is becoming smaller and smaller as miners scrape out the last gold nuggets that are becoming harder and more expensive to find and mine.
In addition, mining has become much more expensive with mining companies now having to provide better employee protections for this dangerous work.
Why Gold Scarcity & Increased Demands for Gold Can Benefit Smart Investors
When gold is in short supply, the demand for gold rises. This can be beneficial for gold investors. This is because the value of gold will also rise. This is an excellent opportunity to diversify your retirement accounts by adding gold, silver or other precious metals to the overall saved funds.
The value of paper currency, stocks and bonds tend to lessen during periods of inflation, recession or other changing circumstances that directly or indirectly lead to financial crises. Those smart investors that added gold to their investment portfolios are much better off financially.
8. Gold Is Considered a Liquid Asset That Can Be Sold Swiftly
Gold is considered a safe liquid asset that can literally be tucked in someone's pockets should trying financial or political times develop swiftly. Even if a government's currency value decreases substantially, the price of gold tends to rise during these situations.
Physical Gold & Other Precious Metals Can Be Sold Quickly When Needed
Since gold is a tangible commodity, it tends to be coveted in troubling times. Through the centuries, wars and government collapse caused many to flee the danger with gold and other precious metals or gemstones tucked safely away in hidden storage spots.
There Are Gold Bullion Dealers Across the Globe That Will Know Real Gold from Fake Ones
Gold is portable, and this precious metal can be purchased in several forms from coins, bars and jewelry. It is often easy to sneak these items into other countries. Gold can be melted down too, giving this metal an even greater value in uncertain times.
Gold can be sold to reputable gold dealers, used as trade to obtain certain goods or for cash. It is possible now to trade gold over the Internet too in today's high-tech society. All in all, gold is a wise investment choice that offers plenty of advantages.
9. Buying Gold Is Simple and Does Not Require Any Special Skills
Gold differs from other types of valuables such as diamonds and other precious gems, paintings and other pieces of art or various valuable collector sets. Most valuable assets need the expert assessment by an experienced and highly trained art, antique and jewelry specialists that can determine the authenticity and value of each item.
Gold Doesn't Require Any Special Equipment or Expert Training
In sharp contrast, gold requires little special skills or training to determine its worth. However, certain gold coins that are collector items may need an expert to ensure that an investor is getting the real deal at the price that the collectables should be worth.
Buying gold bullion, to create a financial hedge against future financial times of distress, is truly easy to do without needing expensive equipment or steep assessment fees for ensuring authenticity and overall fair value price.
10. Gold Is Considered Confidential and Private
Many investors prefer to keep their wealth and valuables private from others. Some individuals are concerned about the chances of theft or simply want their investments to remain confidential. This is getting harder and harder to do as time moves forward.
Gold Is One of the Few Investment Options That Can Be Kept Secret if Desired
It is important to note that an investor is still required to report any increases on their taxable wealth. However, gold investments are one of the very few types of investment options that can be kept secret if this is what the investor wants.
Most gold investment professionals do recommend that individuals buy gold bullion to hedge and stabilize their current retirement investment plans and portfolios. This type of an investment has become more popular in recent years. Today, there are many well-respected gold investment firms ready to review all your investment options and help you determine if purchasing gold is the right move for you at this time.