Gold has maintained its value throughout history and continues to be a popular choice for investors. Can you afford not to invest in gold?
Image by Kan Yang via Flickr
Why We Love Gold
Thinking about gold prices, we wonder if they will continue to remain so high. Or will people realise they’ve paid a lot of money for tiny rocks and move on to something else? Obviously this would crash the gold market.
But chances of this happening are slim. So why should you buy gold? Well, if you’re a savvy mom like me, you’ll know the value of extra emergency money. You never know when you’re going to need it whether it’s for an unexpected hospital visit or a missed day at work because you got a call from the principal’s office. Aside from that, here are the other reasons why it’s a good idea for mom’s out there to invest in gold.
It All Goes Back in Time
The lust for gold is nothing new nor is it unique to any particular culture. In fact, it’s occurred across vast distance. It just goes to show that the high value of the precious metal was established long before historical recordings.
Significant artefacts made of gold can be traced back to pre-800 BCE and even 500 BCE.
The International Cash Value of Gold
This is one interesting phenomenon. Unlike diamonds that tend to have a high market value but less cash value, gold can be used quickly and much easier for the value of the published market price. In fact, the world’s monetary systems tend to regard gold prices as a primary benchmark.
But what is an inexpensive method for producing gold were to come about? Would it cause waves amongst the international monetary community? Would it crash the price of gold? Or would the mere fact that such gold could be produced be snapped up by some gold mogul never to hit the commercial market? And what if gold had to become devalued? Would we even still see jewellery as a must-have accessory or possession?
Unlike 5000 years ago, today we have highly established monetary systems. And gold’s value has remained high mostly based on the fears of those same monetary systems crashing. If we were to think about these things logically (even when considering why should you buy gold), if the world’s monetary system were to crash, wouldn’t it be better for us to own “real” assets as opposed to a metal whose value is attributed to an artificial system of speculation?
There is absolutely no doubt that today’s gold is a hugely strong investment and hedge. However, if a real global monetary crash did occur, chances are people would be looking urgently for other commodities above gold.
But let’s face it, humanity still puts a high value on gold. There are so many gold collectors around the world justifying exactly why gold is a great investment.
If you were to think a little more broadly though, buying gold is quite similar to the idea of splashing out thousands on a diamond engagement ring. But you could just as easily purchase Cubic Zirconia that is created in a lab and it will just as beautiful as a diamond but a couple hundred less.
But gold remains a highly valuable and popular commodity amongst man. It always has and chances are it always will. It’s a globally appreciated precious metal that is going to retain its value for a long time to come and remain a worthy investment.
Unlike coins, paper currency and other types of assets, gold has continued to maintain its value throughout history. It’s seen as a way for us to pass on and preserve our wealth through the generations.
The demand for gold continues to grow amongst investors. A lot of investor are starting to commoditise, particularly gold, as an investment class to which they should be allocating their funds. Can you afford to miss out on such investment?
This post was created in partnership with Mom Buzz Media. All opinions expressed above are my own.