Now is a great time to invest in gold bullion to hedge against inflation and other signs of a flagging economy, according to the Gold Safe Exchange.
Early purchasers of gold coined the term “safe haven,” to describe the intrinsic value of physical precious metals. In times of economic stress or uncertain political circumstances, investing in gold can ease your mind. This precious metal typically holds its value or increases in value in a crisis. So, including gold coins and bullion in your asset mix can help you always have something of value to trade, according to representatives of Gold Safe Exchange.
“In a stable economy, those looking for asset preservation typically allocate 10% of their portfolio to gold and other precious metals,” according to Gold Safe Exchange representatives.
When the stock market plunges, countless buyers watch their retirement accounts plummet in value. Although it tends to rebound over time, the volatility of the stock market has left many people looking for alternate ways to build their wealth. Precious metals can offset the loss of other assets in your portfolio. Many people purchase them to add stability to their retirement savings, for example.
Currently, the economy shows strong signals that now may be a good time for buying and holding gold reserves. The dollar is down, and the government has spent trillions in pandemic crisis relief. Therefore, gold has once again become a global reserve choice for savvy savers, according to Gold Safe Exchange market watchers and Basel iii.
According to recent data, buying $250,000 worth of gold in 2001 would be worth $1,585,000 at the time of this writing, that is over 500% growth!
Gold coins typically increase in value over time. They are also a great heritage to leave behind for children and grandchildren, or as wealth preservation for your estate.
“Gold has been a store of value for over six thousand years. There’s no reason to doubt it will continue doing so in our current economic environment,” says one Gold Safe Exchange senior leader.
You can buy gold in either physical or paper form. Paper gold represents portfolios that include gold to balance out stocks and other assets. Physical gold on the other hand has intrinsic value and protects your purchasing power.
In other words, physical gold provides asset owners full control over their money with zero third party risk. Exchange-traded funds involve a fair amount of risk even if they are backed by gold holdings. Sure, you can invest in a gold company, but do you really have any control over it? Paper stocks, in short, are no substitution for owning the real thing, per leaders at Gold Safe Exchange.
When you hold physical gold and other precious metals, you have to secure the asset from theft. Depending on how much you own, you may need to purchase insurance to hedge against burglary. However, that might be a small price to pay considering all the advantages of owning physical gold, according to Gold Safe Exchange representatives. But with Gold Safe Exchange’s no fees for life program you may be able to have your metals insured by Lloyds of London at no additional cost.