Why Invest in Gold

Learn more about why investing in physical gold can secure your financial future and grow wealth

Millions of Americans have become uneasy about the decline of the dollar and the economic future of the United States, so many have chosen to establish a more stable future by investing in gold. There are a variety of ways to invest in this tangible asset, including direct ownership, gold exchange-traded funds and gold mutual funds.

Direct ownership simply means investing in physical gold, such as jewelry, coins or bars. Gold exchange-traded funds, or ETFs, are a type of mutual fund that trades on a stock exchange, just like any other stock. Gold mutual funds often hold portfolios of gold related stocks like mining and jewelry companies.

According to a Gallup poll conducted in April 2012 , approximately 28-34% of Americans believe investing in gold is a safer option than other types of investments like real estate, bonds or savings accounts.

But with so many choices on how I can invest in gold, which is the safest and most profitable choice?

Investing in physical gold can be a practical choice for a number of reasons:

  • First, gold has been, and always will be, the world’s most prized precious metal. It’s been a desired possession since early man figured out how to pry it out of the ground, and our appetite for this shiny metal has not slacked over the centuries. If anything, it’s increased.
  • Secondly, gold is an inflation-proof investment - when you buy gold with today’s dollars, you can sell it with tomorrow’s currency, and recoup the changes. This is unlike other purchases, which are devalued as inflation chips away at the value of the currency. If you bought a car for $300 in 1960, you might be able to sell it for $300 today–at junkyard prices. Gold doesn’t have that problem.
  • Additionally, gold never loses its intrinsic value. The history of this metal has proven that it will always be in demand. Even if there were a domestic or international crisis, you would be able to sell your gold. It has an undeniable attraction around the world, making it the only “true” international currency. Whether you’re in Alaska or Zimbabwe, your gold will hold value.

Combined with these other reasons, one of the benefits of gold is that you can physically take possession of it, making physical gold one of the most secure investments.. In the event of a stock market crash or electronic blackout, all your investments in companies would vanish–they are only digits in a computer. But you can hold your gold, take it with you and protect it during an emergency. You would be hard pressed to find another investment with all these characteristics.

If you invest in ETFs of gold mining equities, you won’t realize many of the benefits of physical gold. Should unforeseen social or political catastrophes strike, physical gold provides a “financial insurance” that will not be affected. Gold also offers protection against future inflation and dollar devaluation that other investment options cannot.

The bottom line is, when you possess physical gold, you have the responsibility. You can decide when to buy and sell. More importantly, you are in complete control of your own wealth. And that’s a powerful feeling