New Challenges and Choices Serve to Enhance the Value of Gold
More than the symbol of prosperity and prestige it has been throughout the history of civilization, gold remains a true store of value today. That it will be anything less than this at any time in the future is inconceivable. That is why, in the face of the latest investment options and instability in the political and financial landscape, gold is still an integral part of a prudent wealth portfolio.
In this list you will find the many time-tested reasons (along with several new ones) why now is the time to add gold bullion, or add more of it, to your holdings.
- Gold keeps its value. Its price fluctuates but does not depreciate the way currencies do.
- Gold is money, easily and quickly converted to cold hard cash.
- Gold is tangible. That is real wealth that you hold in your hand.
- Gold is indestructible. It is impervious to fire, water, and time. Nor can it be hacked.
- These first four reasons demonstrate gold’s superiority to cryptocurrencies and paper assets. Physical gold is invulnerable to the fatal risks inherent to the digital world.
- The doubts and questions that bedevil cryptocurrencies — volatility, liquidity, reserve guarantees, cyber-security, mysterious backers — do not apply to gold.
- Gold is international, holding its value practically everywhere you go in the world.
- Gold is dense and portable. A great deal of wealth is packed into a compact object that can be held, moved, and/or stored at a reasonable cost.
- Gold, as your physical possession, is yours and yours alone, with no need to involve any other person, entity, or contract. There is no counterparty risk. Further to this point, gold can be a completely private and confidential asset. As long as it remains in your possession, there is no need for anybody to know that you own it.
- As an insurance policy against economic or political crises, gold has no equal. Holding physical bullion in a private vault (outside the banking system) is the ultimate answer to the question of how to protect yourself against the winds of change and the whims of governments as they come and go.
- Gold’s function as a hedge against economic turmoil becomes increasingly vital in 2018. The national debt of the United States, already passing $20 trillion, will balloon by another trillion dollars over the next decade because of the current administration’s new tax bill alone. Overall government expenditures are expected to contribute to trillion-dollar deficits every year. And interest rates are rising, meaning the payments on the debt are rising. Meanwhile, the US dollar is losing value.
- Despite the rise of interest rates, the US Federal Reserve (even under its new Chairman) appears committed to a slow rate of increase, reducing its usual downward effect on the price of gold.
- Gold’s perennial status as a safe haven for investors when political tensions turn to full-blown conflict makes it more than deserving of your immediate consideration in 2018. International divisions are widening, from the war of words and posturing between the USA and North Korea, the growing influence of Russia and China on the world’s financial and political landscapes, the undercurrents of violence and terrorism that regularly explode to the surface, Brexit, and so on.
- This geopolitical turmoil has another direct effect on the price of gold. Various nations are building their gold reserves, notably Russia, which continues to be hampered by Western economic sanctions. And China, seeking greater influence on international financial markets, is acquiring gold to back up its currency as it strives to decouple from the US dollar. These two countries alone are buying up billions of dollars of bullion and others are following suit, exerting an upward influence on the price.
- The planet is experiencing worsening natural phenomena that occur with or without warning, abroad and at home. Beyond the immeasurable human tolls of death, displacement, and the full gamut of financial cost and loss, the greater frequency of catastrophic floods, fires, earthquakes, etc. puts enormous stress on people and societies. Protect your financial health by dedicating a percentage of your holdings to physical gold, preferably in a vault, outside the banking system.
- It is always better to buy before the crisis hits. When it does, there is no question that the price of gold will skyrocket.
- While one cannot say with certainty whether the predicted gains in the price of gold will come true in 2018, leading world expert Egon von Greyerz calls the current price, whatever it is, “a gift.”
- Gold is becoming scarce. Mine production fell in 2016. It was only marginally higher in 2017. There are fewer new gold mines year to year. Eventually there will be no gold left to produce. We don’t think you need an explanation of what depletion of this extremely valuable resource will do to its price. Buy. Now.