Why you should start investing in gold today
The year 2020 has changed everything. It continues to disrupt the global economic fabric with unpredictable conflicts, pandemics, and other threats. Inflation and financial breakdowns are closer to danger than ever, leading to people to turn to invest in secure commodities.
Gold is an Inflationary Hedge
Gold has long been valued by humanity and revered and elated by cultures, religions, societies, kingdoms, civilizations, and kingdoms or governments. Its aesthetic-inclined sentimental value is carried on today with people associating the metal with wealth, power, prominence, and influence.
Gold’s aesthetic and narcissistic human-made importance makes it impractical for industrial uses. Still, people keep on buying it for investment purposes on the basis that people will keep on valuing it.
To prove so, emerging economies have been showing up, and they have continued to increase the demand for gold worldwide. It shows that even without the threat of disaster, the sheer vastness alone of societies that will continue to commodify gold as a luxury item is a significant reason for using gold as an investment.
A Secure Investment in Volatile Times
Some people have been in the financial world have always been doubtful about people using gold as a disaster-preparation investment. Still, this year, gold’s positive outlook proves itself useful and valuable.
When the 2020 stock market crashed on Black Monday 2020, March 9, with the Dow dropping by 7.79% from 2,013.76 points to 23,851.02, many stock investors who did not own hedge assets like gold lost significantly.
When the stock market faltered, the value of retirement savings and other stock market holdings lowered. This has caused people to panic-sell and abruptly release their stocks to avoid significant loss.
On the other hand, those who owned gold remained unaffected by the adverse effects of the stock market crash. They have valuable physical commodities at their immediate disposal, and people’s demand for it has been rising significantly.
During mid-February, the USD started to drop at over 3% from its high point, and in May. Gold investors know that when the currency drops, the price of gold per ounce skyrockets.
Not long into 2020, Morgan Stanley’s analysis of gold’s performance placed its projected base price at $1700 to $1900 per ounce by the year’s end, but the precious metal surpassed expectations. Today, gold is the world’s best-performing traditional asset as, for the first time, its price crosses the $2,000 line.
The pandemic has brought financial instability to our economic institutions, and the World Gold Council (WGC) projects that as this continues, the high risks brought by economic uncertainty and low opportunity costs for gold supports the demand for the commodity as an investment.
Expert forecasts on gold’s rise have continued to be proven right, and the Bank of America Securities (BofA Sec) even places the base case at $3000 per ounce at the end of 2021, considering that there is still no reliable solution to the world’s economic volatility.
In the second quarter of this year, the gold’s demand for investment purposes has amounted to about 582.9 metric tons.
During world and civil wars in the long past, people and companies that owned gold had the benefit of using the commodity to exchange for food, shelter, security, protection, and safe passage.
Investors have long stored gold to keep or grow financial value and wealth as the commodity’s natural behavior promises an ideal increase in time. If it decreases, it rarely does and so predictably and slowly. Wealthy nobles of the past used their gold inventories to secure their family’s social and financial position.
Today, the same principle is reflected in the modern investor’s gold investment model. People store the precious metal for a significant duration and sell it for a higher price when ideal prices are on their favor, or they can choose to pass their collection on to heirs as a continuation of a family’s wealth.
Today, the digitization of the world’s methods has made acquiring gold convenient for everyone. You can get gold and other precious metals through a bullion box subscription. You subscribe to a per month or one-year basis, receiving monthly expertly curated precious metals crate deliveries.
Bullion box companies are an accessible outlet for investors who are now selling their gold for usable cash. They take advantage of the high price given by the unstable economy. On the other hand, the investors buying investments via the bullion boxes are assured with safety by owning valuable physical commodities, reducing risks during these unpredictable times.
Physical gold investments are the most secure assets of today. Even if storage, maintenance, and security requirements can be costly, the potential long term benefits of the investment will cover them.
Before the existence of the internet and online markets, acquiring gold used to require an investor to put in the time, effort, expertise, and travel – getting gold at most had to be a journey. At the minimum, investors had to manually trade and scour for trustworthy sellers and secure expert appraisals and transport to get precious metals.
Today, all markets and commodities saturate cyberspace, and the bullion trade is thriving online. Any investor, beginner or seasoned, can order gold and other precious metals with convenience.
Time to Consider Gold?
The predictions on gold’s performance for today and the future are ideal for people who own and are buying the investment. The apparent threat of the COVID pandemic and its effects on the economy remain, leading investors to hoard the precious metal as quickly as possible, with outlooks for higher selling points for the commodity on the horizon.
Gold is a smart commodity to acquire and wise to have on hand, especially when disasters arise, and threats could be just around the corner.
When currencies dismantle as governments lose control, gold can secure you with a value that can determine your survival. When situations stabilize, and normality comes back, your gold can be sold to benefit you with an ideal retirement.