In these unstable economic times, finding the right investment for your hard-earned money can be a daunting task. Financial experts will tell you to protect your assets by diversifying your portfolio, but what are your options? Gold, which can be purchased as coins or bullion, has increasingly become a strong choice for savvy investors, as it has several advantages over stocks, bonds and other investments.
1. Gold coins are a stable currency.
American history attests that paper currency is only as valuable as the institution that backs it. During the Civil War, the Confederate government issued its own paper currency, but after its collapse, the Confederate dollar became utterly worthless and today has value only to collectors. While the U.S. Dollar has not reached this state, the downfall of major financial institutions in 2008 along with overprinting has lessened its value considerably.
Gold, however, has maintained its value for thousands of years, and gold coins have been used as currency since 700 B.C., making them the oldest precious metals in human history. In fact, the U.S. Dollar was backed by gold until the early 20th century because of its stability during times of war and hardship. With a track record like this, it’s no wonder why investors buy gold coins to preserve their wealth.
2. Gold coins are internationally valuable.
Gold also offers a level of liquidity not found in other investments such as stocks and mutual funds due to its international value. Historically, international trade relied on the gold standard for fixed exchange rates, and though most nations no longer use currency backed entirely by gold, it is still widely traded. Investors, therefore, can easily sell and buy gold coins anywhere in the world.
3. Gold coins are expected to increase in value.
The economic climate has instilled a great deal of fear in investors, which is why many of them are choosing gold instead of risky investments. International governments are also investing more into gold to protect themselves from the weakening U.S. dollar. These conditions, which are expected to grow worse, will lead to a rising global demand for gold to counter inflation. Wise investors can take advantage of this trend by purchasing gold coins and bullion as a long-term investment.
4. Gold coins are easily obtainable.
Thanks to the Internet, it has become easier than ever to buy gold coins. There are now numerous dealers throughout the world that sell gold coins from South African Krugerrands to American Gold Eagles. Unfortunately, the widespread trade of gold has led to a great deal of fraud, which is why savvy investors seek guidance from experts in precious metals investments. Not only will these consultants protect you from scams, but they will also help you find the right kind of gold for your investment plan.
5. Gold coins are a tangible and lasting asset.
Gold has not only been valued for its beauty but also because it lasts. Unlike many other metals, gold is highly resistant to corrosion, which is why it has been used for a variety of practical purposes such as dentistry, electronics and jewelry making. Also, when you buy gold coins, you are investing in a tangible asset that can be handed down to generations.
These examples demonstrate that the future for gold investment is as bright as the metal itself, which is why you should consider adding gold coins to protect your wealth from these uncertain times.
Brandi Tolleson is a freelance writer in Whittier, CA.