If there’s one thing I’m worried about in today’s climate, it is inflation. The value of the dollar keeps dropping while prices keep climbing, and it’s getting harder and harder to make ends meet! As someone who wants to live a happy, stable life, what can I do to keep what money I have safe?
What was that? “Buy gold”? That sounds ridiculous! I’m already low on funds, why would I buy gold?
The answer to that is surprisingly reasonable. Despite the hefty initial cost and somewhat opaque name, gold investing is the simplest way to keep your money safe. I know that that sounds shady but let me explain!
Gold investing is a very easy-to-learn way to keep your wealth secure. While the value of paper money changes thanks to the amount in circulation, the value of gold simply doesn’t. Sure, supply and demand will cause the price of gold to fluctuate a little, but the difference between “expensive” gold and “cheap” gold can be only a few hundred dollars, which is well within the budget of a person who can afford gold at all.
No, when I say the value of gold doesn’t change, I mean it. An ounce of gold in the past may have cost only $20 or so, but that’s $20 in 1800’s money. Nowadays, gold is more than $1000. That’s not because the inherent value in gold changed, no. That thousand-dollar gap was created by inflation.
The dollar’s worth dropped but the purchasing power of gold stayed the same. The amount of food a single ounce of gold could pay in the 1800s is the same as it could now, while a dollar that could have bought more than ten loafs of bread back then can’t even afford one today.
That is why gold investing exists. The world changes, but gold stays the same, making it a way to store your money so it doesn’t depreciate in value over time. This, of course, applies to the other so-called “precious metals” as well. Gold, silver, platinum, and the lesser-known palladium are all precious metals that are traded like stocks.
Benefits and Risks
There are a lot of factors to consider when thinking of buying gold. The first, and most obvious, is how much it currently costs. This can be affected by any number of things, but the price of gold is usually determined by simple supply and demand. How much gold is being traded is what sets the price, so try to follow the usual adage of “buy low, sell high”.
The next thing to think about is how you’re planning on buying your gold, such as through ETFs. These “Exchange-Traded Funds” are a lot like stocks in a way. They’re traded constantly as prices change, making them a lot more volatile and a lot less secure. Gold ETFs are mostly used to diversify investment portfolios and the likes, so don’t consider them too hard if you’re not planning on getting into that. A more in-depth explanation can be found here.
Physical bullions, or bars of gold, are extremely secure in one way and extremely risky in another. A bullion’s worth is determined by how pure it is; the purer, the better. Ironically this is the opposite of how it is in jewelry, where a high purity makes gold less desirable for crafting, as pure gold is rather malleable and easy to distort or damage.
Bullions are great if you want to have physical proof that you own the gold. You can store them however you like, and you can sell them whenever you want. You do run the risk of losing your gold somehow, like from thieves or simple carelessness, but the economic security is great.
When getting into gold investing, do as much research as you can beforehand, or else you might find yourself in a bit of a pickle when it comes time to sell your haul. Luckily for you, there are many resources out there to help you make informed decisions.
Investing firms are nothing new, and even less so for gold investment. There are so many out there to suit your needs, you might feel a little overwhelmed when looking for help. Thankfully, the internet – as always – has you covered.
There are a multitude of review sites that publish helpful articles about companies like Blanchard and Company like this: https://www.kingoldjewelry.com/blanchard-gold-review/, and kinds of information they provide is free for your viewing. Finding succinct, accurate reviews of companies near you is a good way to get started, though you may also want to look into online services if you can’t find any reputable places in your area.
Once you’ve found your firm, you’ll notice it has two primary functions: buying and selling. This is the part you want to pay close attention to. Buying gold is risky, especially if you lack knowledge, as you run the risk of being scammed. Know your stuff before you try to buy it, or else you might end up with a safe full of fool’s gold. On the other hand, selling is risky because you might be underpaid, which is never a good thing.
Always keep your eyes out for scams; your personal safety comes first! The regulations on gold trading may seem daunting, but it’s well-worth the effort to look into. Still, you’ll probably need help when you’re just getting started, so don’t be afraid to look for it where you can.
Your gold adventure starts with you! Whether its for profit or safety, this is a good avenue to look into. Precious metals are all a stable market, and their value will never waver, so keep your eyes on the prize and go make yourself some money!
I hope this article was helpful! Try your hand at gold investing if you’re looking for long-term financial security. Don’t forget to do your homework though! How far you get with this is up to you now.