There are numerous reasons to buy and hold physical gold. Of course, the potential for significant price appreciation is a major factor when investors make the decision to invest in gold. Although everyone likes the idea of buying low and selling high, the idea of a rising gold price is by no means the only-or even most important reason-to buy and accumulate physical gold.
Of all the possible reasons to accumulate gold-such as to preserve purchasing power, to hedge against declining currency values and to add additional portfolio diversification-perhaps the single biggest reason to buy and hold gold is because it may be the only true form of money there is.
Gold has been considered a reliable store of wealth and value for thousands of years. It has been used by kings, peasants and governments. Today, it is widely held by central banks and the wealthy elite. It is widely recognized all over the world, and can be used as a medium of exchange anywhere on the globe.
Unlike modern paper money-which is really nothing more than a “paper promise” of payment, gold carries no counterparty risk and is not “backed up” by any central bank or government. Gold cannot be created out of thin air with the stroke of a pen or a keystroke, nor can it be manipulated to stimulate or slow economic activity. Gold cannot go bankrupt or default, and its supply is finite.
If looking for a real store of value, there is simply no other asset class that comes with the potential benefits of physical gold ownership. History has shown that fiat, or paper currencies, have a strong tendency to lose value and eventually fail over time. Despite the dollar’s strength in recent months, there is no reason to believe that such strength can be maintained over the long run. In fact, numerous governments are carrying fiscal deficits and debts that may require a massive currency debasement at some point to overcome.
The potential effects of debt and inflation on a currency’s value can be significant, and an erosion of currency values can fuel declines in both net incomes and real returns. The potential for such scenarios arguably makes gold a “must-have” in modern portfolios.
Adding physical gold to your portfolio has never been easier than it is today. In fact, this key asset class can even be accumulated in an IRA account. To learn more about the potential benefits of physical gold and why it is the only true form of money there is, pick up the phone and speak with an Advantage Gold representative today. An Advantage Gold account executive can walk you through the purchase process, and can even show you why buying gold in an IRA may be the most beneficial way to build a significant allocation.
Don’t wait for the next major downturn in the dollar or for inflation to erode your purchasing power before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, central banks, counterparty, dollar, gold, paper promise, price appreciation