Gold prices saw an invigorated surge last year following the Brexit vote. In late January 2017, gold prices rose after President Donald Trump took office. These are uncertain times politically speaking. That means more and more people are looking to buy gold.
Expert gold investment firms like Lear Capital are usually at the forefront of encouraging consumers and investors alike to buy gold. Precious metals like gold are valued in an inversely proportional manner to the currency. For example, when the value of the dollar plunges, as it would during an economic recession, the value of gold would rise up. As a result, gold prices are generally volatile. But during times of economic or political uncertainly, gold tends to have the more stable and better value over currency.
Let’s look at some of the reasons why consumers and investors are advised to buy gold:
Hedge Your Wealth against Economic Downturns
As explained above, gold is valued inversely to the dollar. In case an economic crisis occurs once more, most of your cash wealth will disappear. During Brexit, many retirees woke up to a reality where their life savings were losing value because of a freefalling pound. Something much worse occurred during the recession of 2008, when hard earned fortunes were lost overnight.
For most people, economic uncertainty is not something that might happen; it’s when it will happen. The average person lives for seven to eight decades. Plenty of things can go wrong during this time. Therefore, it’s wise to buy a precious metal like gold to hedge your cash wealth against a potential economic downturn or a recession.
Invest in Your Future
Gold is one way to invest in you or your family’s future. Keep in mind that gold itself is not necessarily considered a form of investment. Gold prices do not go up like stock prices. Unless you are buying gold for industrial purposes, gold is not much of a vehicle for investment. Rather, as mentioned above, gold is a hedge.
If you are investing a lot of money in the stock market for property, gold can act as an insurance against a recession or freefalling prices. Do not leave cash wealth unattended for decades without a hedge. Your retirement savings could be gone by the time you retire if you don’t take the necessary precautions.
Gold is not a precious metal that’s kept locked up in an underground vault. At least, not always. Gold coins in particular can be used for bartering. Most people don’t use gold to barter in everyday life. However, in highly uncertain economies, some barter easily with gold coins. Some gold coins can be included in your IRA as well.
Protect Your Wealth No Matter What
The appeal of gold is that it can protect your wealth in times of uncertainly. Whether you like it or not, we are living in times of great uncertainty. Major trade deals, like NAFTA, are close to being disintegrated because of politics. The U.S. and China trade understanding could fall apart anytime too. If these things are to occur, it will deal a great blow to the global economy.
Your personal wealth will definitely be affected by a problematic global economy. The best way to protect yourself from these hazards is to buy gold and protect your overall wealth.