When you look at your saving account, and you’re thinking about where to put this money for rainy days, you have plenty of options to choose from. One thing is sure when you have enough cash, and that’s the fact that they need to be invested in something before inflation eats them.
Some people love real estate, others like to “gamble” on the stock market investing in stocks and waiting for them to rise. Some people are tech savvies, and they’ll invest in cryptocurrency, while others will turn to bonds or savings funds where investment is relatively secured. See more about investing here.
If you’re more a “playing safe kind of person,” then you’ll love the idea of investing in gold and other precious metals. There are more reasons why investing in precious metals is a smart move, and we’re going through the three most important ones. Follow up if you want to know more about why investing in precious metals, and gold in particular is a smart idea.
- Gold never drops in value
We live in the era of the internet, and there’s information about literally anything out there. Charts about precious metal prices are available for more than 100 years ago, so you can easily see what the price was in both 2020 and 1920.
If you look at these charts, you’ll see that the price of gold only goes up. Of course, there are particular downs, but in the long run, you can’t make a mistake if you buy gold. Inflation has nothing on it and if you’re afraid inflation will eat your assets, buying gold is the smartest move.
The best thing about it is that the economic crisis, wars, and other things that affect the market won’t do anything to gold. This metal simply can’t be affected by events that will make chaos in the stock market. During a crisis, the price of it will stay stable or go up making it the best investment in times of crisis.
- It’s nearly indestructible
Unlike other assets that wealthy people love to buy, gold is indestructible. A common practice for many people that would like to invest their money is to buy art or jewelry. Both of these are easily destroyed by any natural inconvenience, such as a flood or an earthquake. See more about its features on this link: https://en.wikipedia.org/wiki/Gold.
On the other hand, gold bars will stay intact. The melting point of gold is 1,948 degrees which means even wildfires won’t do anything to it.
A safe with a few bars inside worth some $200-300k will stay in its place in a case of flood, and even if a disastrous earthquake hits and the entire house breaks down on top of them, the bars will not be touched, and their value will remain the same.
- You can always easily trade it for cash
One significant problem with valuable assets is their liquidity. You may have a house worth $1.5 million, but can you sell it in a moment of need? Let’s say that you urgently need money for something, and this giant house is worth so much, but there’s no buyer in sight; real estate loses any value in these moments.
On the other hand, you can take your jewelry, bars, bullion, or my retirement paycheck fund, walk inside a specialized shop and ask for a payout. In most cases, people working with precious metals will provide nearly any amount you ask for because gold has liquidity and will easily find value.
We mentioned wars and economic instability. These are moments when assets often mean nothing. Your home of $1.5 million will be worthless as you can’t trade it for anything. Gold will be accepted by anyone and you’ll easily trade it for cash no matter where on earth you are, and whatever the circumstances are.
These are the three main reasons gold is a smart idea for investing. If you’re thinking about what to do with your life savings, then think no more and buy some of it if the price is affordable. Of course, don’t expect to profit tremendously from it, but be sure that your money will be safe.