Gold As A Safe Haven ~ The Gold Blog


Gold As A Safe Haven

Gold historically and practically has always been a safe haven from inflation or any economic downturns. The reason for this is gold is one of the best mediums to hold and protect desired work i.e. wealth. Gold unlike fiat government currency has shown to have a track record to outlast even the governments that issued them, when it comes to gold coins. Assets like stocks and bonds usually become worthless when the entity that issued them becomes insolvent. With today’s economic uncertainties physical gold and other precious metals have reclaimed their title as the last safe haven.

If you are looking to invest in gold as a safe haven it is recommended that you invest in physical gold bullion. It is also recommended that you take physical possession of any gold that you purchase. The reason I recommend this is if you invest in gold stocks or gold ETFs you are putting your trust that those businesses are solvent and practicing good accounting standards. With physical gold the price can fluctuate up and down but it will never become worthless because of human action. With most governments inflating their money supply in a futile attempt to save insolvent “too big to fail” businesses; what they are doing in reality whether they realize it or not is encouraging malinvestments and secretly taxing anyone who holds that currency through inflation.

Historically no fiat currency has lasted for more than one hundred years. With the world abandoning the gold standard with the collapse of the Bretton Woods system in 1971; I will make a bold prediction that none, not one government currency will last to see 2071 unless they become backed by some real physical assets. One of the best ways to protect your wealth from a collapsing government currency is to have real physical assets. This is why gold economically will always be a safe haven.

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Gold As A Safe Haven ~ The Gold Blog