Gold has been controlling the economy of many nations and has been present in our society as a valuable metal. The presence of gold in history has been reflected in all civilizations. The first gold coins were introduced in 800 B.C., and since then it has become an important part of treasures of the Kings for the era. Even today, the governments fall back to gold during inflation to stabilize their economy. Here are five reasons why you should be investing in gold.
Gold is way apart in its value compared to paper currencies. One major difference is that gold has always maintained its value through the years, unlike the unstable paper currencies. Because of its stability, people have been converting their money to gold to preserve it for their future generations. Gold has a comparatively low melting point and has a unique color than other elements. It can be converted into jewelry and coins easily.
Gold has been a savior of the governments during the time of inflation, the reason behind being its price, which tends to rise along with the cost of living. Gold has been accepted by the governments as a good store of value, and people are encouraged to buy gold when the paper currency starts to lose value. Gold tends to be priced higher because when a currency dies, the government used gold to estimate the value of things, and hence, its own value rises.
Protection from Deflation
When the prices for the products starts declining, and the economy goes under excessive debt like when it happened in the 1930s, the value of gold has been surprisingly found to be increasing while other materials see a decline in their values. Maybe, because of its attractive color and distinctive properties which were helpful to figure out the theory of relativity, people tend to fall for this element more than anything else.
Gold is capable of retaining its value during geopolitical uncertainty. Due to the changes in geographical division of nations through the centuries. People move to the other countries during the crisis, and in this time, gold can be one of the beneficial commodities to take along as its value is stabilized. During the crisis faced by the European Union, gold experienced major price increment. The price of gold tends to increase in any government crisis.
The demand for gold has been reported to increase in the past years due to the emergence of market economies. India has been a giant in the trade and consumption of gold. It has been famous for its gold jewelry and often boasts the use of gold during special occasions. Investors have also started showing more interest in gold trade. Gold also helps precious by many governments for the time they will have to deal with any crisis of any sort.