Many financial professionals around the world recommend that gold investment is the best form of investment. Some people are buying gold for their wealth, while others are buying silver and investing in IRA gold custodians to secure their hard-earned savings. After studying the economic and monetary policies of USA, many financial experts and economists are forecasting an economic crisis.
Most countries have different issues trying to preserve their economies. Even the USA has $17 trillion of debt, with a Federal deficit that is close to $ 1000 Billion. These dire statements of financial experts drove even billionaires into investing in gold for their secure future.
Reasons to Invest in Gold
Investments in gold are more attractive when economic conditions are so dire. This is because gold has been used since ancient times as a currency and as a reserve of value. Although any currency can be devalued by overprinting it, gold remains the only currency worth its weight in times of inflation. Your investments made in paper products such bonds, stocks, or mutual funds since 2001 might have been lost quickly or could have been affected by inflation. However gold and Silver had grown more than 400%.
Gold, the precious and yellow metal, holds a unique place for common people. It has been used as money for at least 5000 years. While several currencies faced difficulties in the past, gold has seen its value rise over these years. Even though the US dollar is still a viable currency, it is losing its worth every day. If the 1971 US paper currency had been not backed in gold, it would have lost all its potential as a currency. The US Government’s credit potential has helped to back the dollar in such crucial times. All these facts make it easy to invest in gold.
Why do you want to invest now in gold?
Most currencies, including those of the USA, are currently in financial crisis. This is because they printed their currencies whenever necessary without backing them with gold. International market value will drop if a country prints their currency without backing them with gold. People start to avoid that currency when they lose faith in it. It is the start of hyperinflation in a country’s economy. The situation gets worse when they print more money to prove their potential. Hyperinflation may be possible but it does not guarantee certainty. In the end, your currency will be worth less if you return to gold. The decrease in currency worth, including the dollar, has an effect on the value of gold.