WHY GOLD WILL ALWAYS BE AN IMPORTANT LONG TERM INVESTMENT
Although you never want to put all your eggs in one basket, investing in gold should always be one of the strategies you take when protecting your wealth over the long term.
For centuries it has been seen as a tangible demonstration of wealth, boasting a history of over 3000 years during which time it has been used as a source of value that has proven to be more resilient than different currencies the world over. It Has been crafted into jewellery to adorn the bodies of rulers the world over. It is stored in bank vaults and held in security over a nation’s dominance on the world stage. It’s price goes up and down, but has remained a constant in the global trading markets for centuries.
Here’s why buying those gold bracelets is not just an act of vanity, but actually a serious long term investment for you and your family.
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Gold is not a commodity as we understand it – it is money
You can hold a kilo of gold in your hand and it will never change or get used up. It is tangible, solid, indestructible. You can’t make it into something else and consume it, like grain or corn. You can’t put it in a car tank and burn it off. It can’t be hacked into. Imagine this – of all the oil that has ever been extracted from the ground – what has happened to it? Where has it gone? And of all the gold that has been extracted from the earth – it is still in existence somewhere in the world, whether as a gold bracelet around someone’s wrist, or sitting in a bank vault, retaining its value.
Equally, gold has no borders. Its value may vary slightly, but a wherever in the world you are, that gold maintains its intrinsic value.
Gold is a minimum risk asset
In its 3000 year old history, gold has never lost its value. It is the very foundation on which all economies are based. With gold bullion, no paper contract or third-party intermediary is needed. There is no contractual obligation. If all else in the world fails, that gold foundation is still standing, ready to have a ne order rebuilt on its solid base.
Gold vs Bricks and mortar
While property is a great long term investment and is likely to hold its value, it comes at a cost. Just ask any landlord who has to fork out on boiler repairs every winter, or is at the mercy of changing tax policies as governments implement revenue generating measures.
A £100,000 property will need repainting and renovating. It might take on tenants that default on their rent and leave you facing mortgage arrears.
A £100,000 gold ingot will sit comfortable locked away in a vault or safe and not cost you another penny, ever!
Gold provides a safe haven during times of crisis
In the 1970s, interest rates rose to 15 percent, inflation was at 14 per cent, there was an energy crisis, the Soviets had invaded Afghanistan, tensions with Russia were still at an all time high – and gold values rose by 721 per cent.
When Black Monday hit in 1987, the value of gold increased by about eight per cent. When the global financial recession spread its tentacles over 2008 and 2009, gold values rose by over 25 per cent.
It seems, that the worst state the world is in, when the precarious nature of currencies and mounting debts tilts too far out of balance, the greater the value of your gold stocks.
