Before I give you my arguments for investing in gold, I would suggest you to have a neutral mind. So that you can see through clearly. Because I am not going to tell you that you should invest in gold because the world is going to collapse. Or USA or any other country you are in will turn into Zimbabwe or Venezuela, it may, but let’s hope that it won’t.
As I see it, people invest in gold for following reasons –
- Scared of hyper inflation
- panic of economic trouble
- Gold is safe haven
- Hedge against inflation, and commodities are good bet
Gold is great to store your wealth and purchasing power, let us say it is the real money, but gold may or may not be a used as currency. Let me give you my logic, if you can buy a suit for $1200 today and for the same money if you can get 1oz gold. Say hyper inflation hits.
What happens if hyper inflation hits
1oz gold cost $10000 now, do you think the the suit will still cost $1200? Nope , if anything it will cost $10000 or more. So, my point is, yes your purchasing power will be protected, but do not think that your wealth will grow with gold’s price.
Economic trouble had come in the past and market recovered, and it is cyclical. Even if market crashes tomorrow, within few months it will recover. If you are in states, if you think market will crash because of debt, remember debt is government debt but stock market is not officially owned by government. Government can tax the corporations, but then the corporations can move to some other place.
Now, why do I think gold is not good enough to be currency ?
See, if the collapse really happens, you will need food, and gold will be great to protect your wealth but probably you will not be able to take to shop your grocery store for obvious reasons. It will mostly depend on government. Even if you want to use the gold bar as money you have to take to a coin or gold dealer , take the cash and then you can go shopping. Now, if gold becomes so expensive, your gold dealer might not have enough cash with him to give you.
Let’s just forget about it, how will you leave country with gold bars if you need to?
But, I personally invest in gold. Just like any commodity it has industrial use and it is hedge against inflation. I want to keep my gold as mobile as possible. I do not exactly believe gold etfs. But, goldmoney can be a good option, if you want gold, and keep it mobile.
Goldmoney offers you to buy physical gold, you can keep your gold in their vaults or get it delivered to your house. If you plan to move around the globe, you can use the gold as cash in europe and other places. Sign up and invest in Gold out today.