When it comes to your money, you can choose to buy stocks, bonds, keep it in a money market account, or even hide it under your bed if you so wish. But if you want to make a smart investment, consider buying gold. Gold is a material that has been held in the highest regard for thousands of years, and in this day an age it is still a very valuable commodity. There are many good reasons to buy gold, such as:
Protection from Inflation
You can get a good return on many types of investments, but by the time you cash out an account or sell off your stock your return may not buy as much as you would think due to inflation. The cost of living continues to rise year after year, but the value of gold also tends to rise at the same time. When you own gold, there is a good chance that you will be protected from inflation in a way that other types of investments can't provide.
Long Term Value
In the past few decades the U.S. has seen the stock market crash and the housing bubble burst, but its not easy to find headlines about gold value collapsing. Gold has long been known for holding its value, and it should continue to do so. Owning gold gives you something tangible that has great worth around the world.
Not Tied to a Government Monetary System
In this day and age, most governments have a fiat currency system and money only has value because the government says it does. There is nothing of value, such as gold or silver bullion, backing up the currency system like there was in the past. This leaves fiat currencies in danger in the event that a government collapses or there is a financial or economic catastrophe. Gold is a lot different than a fiat currency system, so buying gold is a way to ensure you can maintain your wealth even if the value of currency collapses or ceases to exist.
Diversification of Your Investment Portfolio
Just like it is never a good idea to put all of your eggs in one basket, you don't want to put all of your money in investments that are too similar to each other. Since owning gold is a lot different than owning stocks or bonds, consider creating a diverse portfolio by making wise investments in both areas.Share