Obviously, you may ask, why is gold so important or valuable and what is all this noise really about? Well, the brain behind my writing is that I don’t want you to be unaware of your financial / investment / retirement future and planning. You don’t have to keep going into the dark ages on matters involving gold and precious metals, so I present to you the unmistakable reasons why gold should be part of your investment combo.
1. Diversification of assets. When thinking about investment funds, the old saying “don’t put all your eggs in one basket” usually comes to mind. Although some critics say you put all your eggs in one basket and keep an eye on it, good luck to them. Smart and smart investors need to ensure that at least 5% of their investment portfolio is made up of gold and precious metals.
2. The constant existence of gold. The fact is that gold has left the human age, and as long as the world remains, gold will be permanent. Gold is superior to other property, products or investments (buildings, vehicles, stocks, bonds, etc.) because the value of these properties can deteriorate over time and the prevailing economic phenomenon. Take for example the saga of the global stock market in 2008; also you need to incur maintenance costs to keep them in good shape.
On the other hand, gold does not erode or oxidize regardless of the number of years we are considering.
3. Gold shortage. Gold reserves are limited. Statistics show that the world’s annual gold production is about 2,500 tons, and the value of gold worldwide is estimated at 9 trillion US dollars. It is better to buy gold now, rather than regret it in the years to come.
4. The symbol of the state. Without the stuffing of words, gold is very eye-catching and strongly affects human nature. In fact China and India are well known for their high value they attach to gold as their wealth store, so their wealth is expressed in the quantity and quality of gold you have owned.
In human nature there is a desire to belong to the highest investor / social / political class, so the value of gold that you own in a society will determine whether you belong to this showy class of elites.
5. Counterparty risks. Gold is completely excluded from counterparty risk. The said term means that you believe in the ability of the other party to enter into a transaction / contract within a specified period. Examples of buying stocks, employers and employees explain better.
You buy stocks in the capital market in anticipation of dividends, price increases and cash next year. It is possible that the stock market may collapse before your target date or if the employee works for an employer. It is expected that upon retirement the employer will pay an unpaid pension and a pension, but the employer can retire before retirement. All of these scenarios can’t happen to gold because you have it tangible and you can easily convert it to cash to improve your lots.
6. Substitute insurance policy. The purpose of an insurance policy is to put you in the same financial position that you like to lose. Gold can also play the same role if you have it. During national crises (wars) similar to Africa – Liberia and Rwanda, 1 kg of gold can bring back human convenience.
7. Bull market (gold). If you read any guide or recommendation on products or safety, the disclaimer is usually the beginning of such content, and the summary is that “past performance is not a guarantee of a future outcome”. Thus, gold is freed from this pattern well from the beginning of the new millennium; gold was in the bull with double-digit profits.
8. Anchor against deflation. Undoubtedly, the open secret that the economic recession is now a global phenomenon, the ever-increasing indebtedness of states (the US and the UK, for example) could potentially lead to deflation with catastrophic economic consequences. The consequence is that the value of the assets will be reduced, but gold has stability and works better when the value is maintained regardless of economic problems.
9. Geopolitical risks. Wars, terrorism (the United States – the unforgettable 911), natural disasters and other allied dangers characterize the world community today. For example, during the war the main problem – security and human survival, of course, will be economic paralysis and recession. Fixed assets; real estate, financial instruments, other properties and cash currency will be almost useless in value. At this time, gold provides peace of mind, and the price remains constant.
10. Shop cost. Historically, gold has thousands of years of reserve records as the best storehouse of value. Regardless of economic and global situations (technological change, trends, development, etc.), gold has a feature of acceptability and value for money. Therefore, for the security of your investment, retirement and transfer of your assets to the next generation, gold is the best choice.
11. Gold is money. History tells us that the first gold coins were minted and put into circulation by 550 BC. E .; gold was the longest and most durable form of money. In fact, until tomorrow’s sun rises, gold remains a form of money back.
Given these green lights, the seam saves time. Please click on the link below to start your investment in gold or 401K.