Since times unknown, humans have placed gold on the pedestal of worship and success. Even today we have options for buying gold like a Gold IRA through companies like Regal Assets.
Throughout diverse cultures and prolonged centuries, the charm of gold has managed to interweave itself in the human psyche and acquire an indispensable place in human history.
People have always continued to buy gold for various reasons, but mostly as a reaction to the chaotic uncertainty surrounding the core of their existence. Indeed, buying gold is still considered as the #1 form of investment.
Before reading more about how to buy gold, let’s discuss investing in gold. It’s relative importance (or un-importance) may be understood by the following points:
Unlike property assets and paper currency, the value of gold has remained untarnished throughout the ages. Even now, gold is looked upon as a wealthy and solid form of inheritance, something can be passed on to future generations and preserved for rainy days to come.
The Value of the Dollar
The value of U.S dollar, one of the important reserve currencies of the world underwent fall between the year 1998-2008. During that decade, people were prompted to flock to the security of the value of gold. This concurrently lead to a hike in gold prices, which further established gold as the prime form of investment. In today’s economic times, gold has almost doubled its original value.
Relation to Living Costs
Gold is largely seen as an investment or asset that gives an edge over people to fight against inflation, since the price value of gold increases in effect with the rise in living costs. This trend has been observed since the years after World War II, when the U.S inflation was at its peak, with gold, being the only resort against continual hike in living costs.
Gold has a strange chameleon-like character, as it blends quickly with the changing economic trends and maintains a high value during inflation as well as deflation. The latter is a period characterized by burdens of excessive debt, less profit returns and slow business growth. During deflation, although other prices drop, the value of gold still soars, making it a reliable and opportune form of investment.
Gold retains a rich value in times of both, financial uncertainty as well as geopolitical unrest. No wonder it is referred to as a crisis commodity, as people find solace in its safety under situations of Government tensions. During such times, it always outperforms other types of investments, by maintaining a steady high value.
The Bottom Line
The bottom line of the discussion is that gold as an investment is worth considering, as it serves like a hedge at the face of inflation and retains a high value, even when other major currencies erode. Moreover its price always soars is response to situations that cause stocks, bonds and other property assets to decline in value.
When buying gold, however, it’s important to make sure you’re choosing wisely.
Here’s a quick video on the best places to buy gold and silver, and more importantly, which places to avoid.