Humans have cherished gold more than any other precious metal throughout history. For centuries it was used as legal tender and it backed legal tender in the United States. Gold adorned kings, pharaohs and in recent years became a sign of opulence among the world's very wealthy as they coated cars and weapons with the expensive metal. Human beings have been attracted to gold throughout the ages and this trend shows no sign of stopping any time in the near future.
When times get tough economically, banks, countries and wealthy individuals often turn to gold to preserve their riches. Gold gives people and societies the security of knowing that no matter what happens in the world, they will still be wealthy. While money in the bank can suddenly become worthless in times of trouble, gold in the hand will always be able to buy you the things you need to survive and live the life you have grown accustomed to. People might think that we're crazy to think this way or prepare for something that might never happen but it's often better to be safe than sorry. There are many countries where after a war their currency becomes as worthy as the paper its printed on. It is the wise investor who is prepared and the savvy person who is realistic about the future possibilities and invests at least a portion of his savings in a material that will hold its value as well as be liquid enough to turn into money no matter where he is in the world.
There are some that feel that gold simply lacks the liquidity that other investments have. Stocks can be sold quickly and money in a savings account can be withdrawn easily. Owning gold is probably difficult to turn into spendable cash, right? Actually, precious metals are very liquid and it is possible to exchange gold for currency in many countries. You would simply walk into a bank with your gold and ask for it to be exchanged for money. Selling your gold back to the source of your investment or another investor is also an option and this is often the route that most owners go when they decided to liquidate their portfolio or a portion of their investment. Gold is actually more liquid that many other investment vehicles.
There are many other physical goods that you can invest your money in but their liquidity is often limited. Homes, raw land and material goods such as cars or collectibles might be great ways to invest your money but their liquidity is often limited. Selling a home or car quickly often requires you to sell at a bargain price if you need money for an emergency. Also, it is often difficult to unload a house that you invested in quickly if prices begin to plummet as they often do during an economic crisis. Gold, on the other hand, often increases in value and goes up in price during tough economic times. As stock prices plummet, the price of gold often goes up since wise investors scramble to move their money into something that is safe and secure.
Most people invest in gold because of the stability. Gold has steadily increased in value over the years and it is a long term investment vehicle meant to stave off inflation as well as give the owner some security in uncertain economic times. Of course, the appeal of gold goes beyond its monetary value. We are drawn to gold. We equate gold with wealth and it is almost a universal sign for success.
Growing up, many of us dreamed of being wealthy. We all knew what gold was from the time we were quite young. We played games and dreamed of being kings, queens or the richest person in the world. Part of that dream may have involved having a safe filled with gold bricks. As we grew older, the allure of gold continued. Gold jewelry, gold engagement rings and maybe even the desire to own a little gold continued. We wanted to feel secure. We wanted that feeling that we had arrived that comes with owning gold whether that be a gold ingot or a perfect gold coin.
We all have that desire deep within us to own gold in some shape or form. While fulfilling a childhood dream might not be the primary motivating factor in investing in gold, it is entirely likely that more than one investor smiled with delight and felt like that child that they once were the first time they felt the weight of gold in their hand for the first time. There is something special about gold that gives us a pleasant feeling inside. Even though this might not be the primary reason for buying gold, it certainly is a nice bonus that investors might never admit to anyone other than themselves.
When times get tough economically, banks, countries and wealthy individuals often turn to gold to preserve their riches. Gold gives people and societies the security of knowing that no matter what happens in the world, they will still be wealthy. While money in the bank can suddenly become worthless in times of trouble, gold in the hand will always be able to buy you the things you need to survive and live the life you have grown accustomed to. People might think that we're crazy to think this way or prepare for something that might never happen but it's often better to be safe than sorry. There are many countries where after a war their currency becomes as worthy as the paper its printed on. It is the wise investor who is prepared and the savvy person who is realistic about the future possibilities and invests at least a portion of his savings in a material that will hold its value as well as be liquid enough to turn into money no matter where he is in the world.
There are some that feel that gold simply lacks the liquidity that other investments have. Stocks can be sold quickly and money in a savings account can be withdrawn easily. Owning gold is probably difficult to turn into spendable cash, right? Actually, precious metals are very liquid and it is possible to exchange gold for currency in many countries. You would simply walk into a bank with your gold and ask for it to be exchanged for money. Selling your gold back to the source of your investment or another investor is also an option and this is often the route that most owners go when they decided to liquidate their portfolio or a portion of their investment. Gold is actually more liquid that many other investment vehicles.
There are many other physical goods that you can invest your money in but their liquidity is often limited. Homes, raw land and material goods such as cars or collectibles might be great ways to invest your money but their liquidity is often limited. Selling a home or car quickly often requires you to sell at a bargain price if you need money for an emergency. Also, it is often difficult to unload a house that you invested in quickly if prices begin to plummet as they often do during an economic crisis. Gold, on the other hand, often increases in value and goes up in price during tough economic times. As stock prices plummet, the price of gold often goes up since wise investors scramble to move their money into something that is safe and secure.
Most people invest in gold because of the stability. Gold has steadily increased in value over the years and it is a long term investment vehicle meant to stave off inflation as well as give the owner some security in uncertain economic times. Of course, the appeal of gold goes beyond its monetary value. We are drawn to gold. We equate gold with wealth and it is almost a universal sign for success.
Growing up, many of us dreamed of being wealthy. We all knew what gold was from the time we were quite young. We played games and dreamed of being kings, queens or the richest person in the world. Part of that dream may have involved having a safe filled with gold bricks. As we grew older, the allure of gold continued. Gold jewelry, gold engagement rings and maybe even the desire to own a little gold continued. We wanted to feel secure. We wanted that feeling that we had arrived that comes with owning gold whether that be a gold ingot or a perfect gold coin.
We all have that desire deep within us to own gold in some shape or form. While fulfilling a childhood dream might not be the primary motivating factor in investing in gold, it is entirely likely that more than one investor smiled with delight and felt like that child that they once were the first time they felt the weight of gold in their hand for the first time. There is something special about gold that gives us a pleasant feeling inside. Even though this might not be the primary reason for buying gold, it certainly is a nice bonus that investors might never admit to anyone other than themselves.
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