Like any other commodity, currency, or stock, gold has its ups and downs. It’s easy to get caught up in watching the day-to-day fluctuations in the spot price, trying to time the market for the perfect price.
But what if we told you there are reasons to own gold that are fundamental, and hold true no matter the price? Below are seven of these reasons.
1. Gold hedges against inflation and crises
Inflation erodes the value of your dollars. By contrast, gold tends to increase in value when inflation rises, making it an effective hedge against inflation.
Gold also hedges against geopolitical and economic crises. Gold has held its value through some of the most turbulent periods in history, while many currencies have not – hence its reputation as a “safe haven” investment. In a crisis, your dollars could be worth nothing, while gold is an almost universally accepted form of payment and has been for thousands of years. Which one would you rather trust?
2. Gold preserves wealth
Being a trusted store of value for thousands of years, gold preserves your wealth over long periods of time. Currencies and stocks can crash and be worth nothing, but gold will always have intrinsic value.
3. Gold improves your purchasing power over time
The dollar doesn’t buy what it once did. Over the past 100 years, the U.S. dollar has lost approximately 96% of its purchasing power. Gold has seen a 157% increase in its inflation-adjusted price during the same time period. The image above demonstrates what this means for the average consumer (click image to enlarge).
4. Gold diversifies paper-based portfolios
Diversifying your assets reduces your portfolio’s overall risk. A portfolio full of stocks, bonds, and other paper assets would suffer major loss if a financial crash occurred. If that portfolio also included physical gold, it would not have lost as much, since gold tends to go up when paper assets go down. Gold is a proven and easy way to diversify your investments and limit potential losses.
5. Gold represents a high-quality liquid asset
As one of the oldest and most recognized forms of currency in human history, gold is easy to buy and sell almost anywhere in the world.
6. Gold transfers wealth over generations
Gold is an easy way to pass your wealth down to your children, your children’s children, etc. No paperwork or signatures are needed, just a simple change of hands.
7. Gold keeps your money out of the hands of Washington and Wall Street
Many people buy gold because they don’t want their money tied to the Federal Reserve’s monetary policy or the uncertainty of the stock market. The government can always print more money, but it can never print gold.
Call American Bullion today at 1-800-326-9598 to learn how easy it is to own physical gold.
About American Bullion
American Bullion, Inc. specializes in converting IRAs, old 401(k)s, or other qualified retirement accounts from paper-based assets to physical gold coins and bars through a Gold IRA rollover or transfer. We’ve pioneered a system to handle all the details for you, tax-free and hassle-free. Interested in buying gold and silver and storing it yourself, outside of your retirement account? Simple – we’ve insured and shipped millions of dollars’ worth of gold, silver, platinum, and palladium to thousands of homes just like yours. As a U.S. Mint nationally listed dealer, we strive to be the best Gold IRA company in the industry and guarantee every transaction is fast, simple, and secure. See our American Bullion Reviews page for testimonials from our many satisfied clients.