There are a lot of fun, exciting, boom or bust options out there when it comes to investing. And with everyone always selling a new idea, It can be truly hard to know what to put those hard-earned pennies into these days. But the good news is, there is a safe, old option out there. It’s the same precious metal that graced the thrones of the kings of old, and it’s still in business today.
Here are four reasons to invest in gold today:
1. It’s Steady
And it pretty much always has been. If you were to have bought a 1 oz piece of gold on the 29th of December, 2000, when it was at $272.00, you could have turned around and sold it seventeen years later on the same date for $1,302.90. You might think, woah, that’s not steady, that’s skyrocketing! But the truth is, the reason the numbers have changed so much throughout the years, is that while money has been decreasing in value, due to inflation, Gold has stayed relatively steady.
Back in its heyday, money used to be backed by gold. This means that for every bit of printed money, there was an equivalent amount of gold ‘representing it’ in Fort Knox, Kentucky; the gold gave the money its worth. But on August 15, 1971, The U.S government decided to take money off the gold standard.
Since then, money has only had value because of a government promise of its worth, simple words instead of actual, solid value. And despite their optimism that it would retain its value, money has been on a consistent decline ever since.
According to DollarTimes,”$1.00 in 1971 had the same buying power as $6.07 in 2017.” All that to say, money is flukey these days, but gold is very stable.
2. Unlike Money – Gold Has Value All To Its Own
So why is it so stable? Because there are many factors that contribute to its worth. As far as ‘supply,’ gold has value because it is a very rare metal. When it comes to ‘demand,’ it has value because people want it and need it.
The usage of gold in the crafting of jewelry isn’t a modern idea. In fact, it has been used for that purpose since as early as 4,400 B.C. This means that gold has maintained its value throughout the existence of every major civilization in the history of mankind. The Egyptian empire, the Babylonian empire, the Persian empire, and the Roman empire have all come and gone, but gold has remained king. There just aren’t many things a person can invest in that have that type of track record.
It also has industrial value. According to Business Insider, it is often used in the medical field because it “can be placed in contact with a person’s body and not cause harm to one’s health.” For this reason, it can be used to aid in the treatment of “certain cancers” as well as “arthritis,” and “lagophthalmos” per Geology.com.
It is also used in electronic equipment, medical and otherwise, as it conducts electricity very well. So in addition to being an extremely beautiful metal, it also serves real, practical, and even life-saving purposes, making it one of the most valuable metals on the face of the earth.
3. It’s A Good Safety Net For The Dollar/Stock Market
Everyone should have a good amount of money in the bank; anyone who suggests otherwise had better have a very good argument to back up their point of view. But as the U.S. dollar continues to lose its value, it is important to think ahead as far as investing is concerned.
Some people have a knack for the stock market and know how to really work the system to bring in profits. Others are putting all their hope into Bitcoin these days; but with a track record of maintaining value since long before the bronze age, gold is one of the most steady investments there is.
Gold also doesn’t make mistakes. Anytime there is a controversy with a publicly owned company, a major drop in its stock value tends to follow shortly after. A few companies who have recently experienced this are Target, and United Airlines.
So while the stock market can indeed be a great investment, it can also be extremely risky; and the bitcoin lottery? Even riskier (although intriguing).
4. It Can Be Sold Easily
If you decide to invest in gold, you can take comfort in the fact that the metal is not at all difficult to sell. Between coin shows, shops, and private buyers/sellers, there are always more than a few ways to turn it into money if need be. There are privately owned coin retailers all over the U.S, many of which buy gold; just make sure to look up what it is priced at before you sell it, and don’t accept any offer below spot price.
Also, as a rule of thumb, smaller pieces are generally easier to sell than large ones. So buying pieces in the 1/10 oz – 1/2 oz range with an occasional 1 oz outlier (if you feel like it) is a good game plan.
In conclusion, there are risks to every single kind of investment; but gold is about as safe an option as there is or ever has been. It has been valuable for a long time, and it will likely continue in that pattern as long as the clock keeps ticking. And though it isn’t as adrenaline-inducing as the stock market, no one can ever tell you it’s not flashy… it is, after all, gold.