In these troubled financial times, there are many good reasons to consider broadening your investments and looking into investing in gold. In particular, a gold coin collection can be a rewarding investment – both personally and financially. There are five excellent reasons why you should start collecting gold coins today.
First, gold is an excellent way to hedge against inflation. Your gold coin collection is a sure fire way to make sure that you don’t lose money as inflation hits the market. In fact, one of the most consistent factors in measuring the price of gold has generally be inflation. As inflation increases, so does the price of gold. This is particularly important to recognize now, as economic factors create a perfect inflationary storm. America is the world’s biggest debtor nation, the financial policy of the country favors economic stimulus, and there is currently a massive trade deficit. Gold and commodity prices have never been better.
Second, a gold coin collection will protect you against the dollar’s decline. The dollar is currently the world’s reserve currency, which means that the dollar is also the primary currency for international transactions, the value of savings, and the currency in which the worth of commodities like gold is calculated. Gold is bought and sold by dollar, which means that if and when the dollar declines, the price of gold will go up.
Third, gold is the “crisis commodity.” This means that when there is political or economic uncertainty or crisis, investors flock to the safest and most liquid investment they can make – gold. Gold has been valued as a measure of wealth for thousands of years, and currency comes and goes. Gold will always protect your wealth in uncertain times.
Fourth, there is high demand for gold. Recently, gold production has been declining, and the demand only goes up. Global gold production has been declining since at least the year 2000, and some experts are wondering out loud whether the world has already hit its peak gold production. With a limited supply on the market, the classic rules of economics dictate that prices will rise.
Lastly, gold is eternal. There is never any question that gold will remain a valuable commodity. The rise and fall of nations cannot stop it. It will not be touched by stock markets, debt crises, or other financial meltdowns. Gold will always have value, and that means it is always a good investment for your money. Speak to a financial advisor about starting a gold coin collection today.