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Reasons to Invest in Gold – 2022 Edition

  • May 4, 2022

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There are various reasons why investing in gold is a primary option to save your wealth. If you are looking to hedge against inflation, diversify your portfolio, or create a safe haven for your family, gold is the place to look. Below I detail some great reasons to trust your savings with the safety of gold. 

  1. Hedge Against a Fluctuating Market

The price of gold is independent of the movement of stocks and bonds; this means if the market is down, gold will most likely be up. So if you have a feeling like the market is going to crash, *cough cough* then gold and other precious metals are a great place to diversify. Having money in the stock market will allow you to diversify on both sides of this coin. 

  1. No Longer Rely on Fiat Currency 

Unfortunately for citizens of the many countries that rely on fiat currency to serve their economy, paper currencies that are not backed by any asset whatsoever have always failed and will continue to do so long into the future. The only thing that will fix this is if given country will stop printing fiat currency and turn back to a system that is backed by an intrinsic asset with a finite supply like gold or other precious metals. Why do you think the purchasing power of the US dollar for example has decreased 97% in the last 90 years? It's because politicians and government agencies get a heavy hand and decide it fits their best interests to continue printing. This has enormous repercussions, not only for the citizens of that country or it's national economy, but the economy of the world and the other countries that chose to trust such an unreliable, unstable asset. We are in for a huge awakening once other countries decide the US dollar is no longer reliable - losing world reserve currency and petrodollar status means our economy will completely shut down. Not to mention the fact that the United States is a big importer, meaning they don't make much of the goods and services they use! 

  1. Gold Does Not Lose its Value

Why doesn't gold lose its value? Because it has a finite supply, meaning more can not just be printed out of thin air, and it has intrinsic value. If an asset has intrinsic value, that means it is currently being used in real world scenarios to produce goods that have value. As mentioned above, fiat currency puts holders in a scary situation, whereas gold does the exact opposite. 

  1. Gold Has Many Different Forms You Can Invest in

Don't want to keep physical gold bars in your home? How about gold coins? If not you can easily invest in gold ETFs. Gold mutual funds, gold jewelry, and even gold IRAs offers, are other options at your disposal. You are not subject to gold in a single form - take a look at your investment options and choose whichever is best for you and your future. 

Conclusion

All in all, gold has been around for thousands of years and has long stood the test of time. We will soon see the downfalls of paper, fiat currency and watch as the world heads back to the gold standard. Certain countries are already turning back, leaving behind the other nations that choose to live in an inflated economy. Don't let your wealth get stuck in a assets that will be worth nothing in less than a decade or two! Save yourself and your family from financial turmoil with gold. 

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