Gold bullion is precious metal that has been purified and modified to make it easy to move.
Over the course of the past 90 years, it has become less common for citizens to keep bullion as a hedge against inflation and economic collapse. Today citizens not only have the legal right to own gold, they can now buy gold bullion and also store it safely.
For too long, using gold as an investing strategy has not been practiced by the multitudes. In fact, because of employer-offered mutual funds, the multitudes have rested their hopes on stocks, which are far more risky than gold bullion.
3 Reasons Why Gold Is Safer Than Stocks
Reason # 1 Gold Bullion’s Tangibility
One of the reason’s why gold bullion is safer than stocks is because stock in a company can disappear, whereas gold is tangible. Gold and real estate have this in common but unlike real estate, the value of gold rises during a recession. After the 2000 and 2008 American stock market crashes, many people lost wealth when stocks collapsed. The big banks that were responsible got rewarded with a bailout. The common stockholders got nothing. The graph above shows the dip in the Dow Jones Industrial Index in 2008.
Since gold is tangible, it did not lose its value in the way that stocks did in any of the stock market crashes. When stocks arose again, as reflected in the above graph, it was because of government-stimulated growth and also because of the rise of new companies. If you had stock in any of the companies that nosedived during the 2008 crisis, either you lost them because the company completely collapsed or you had to wait years for them to rise again in value. However gold skyrocketed because of the certainty that its tangibility creates.
Reason #2 Gold Bullion Is A Safe Haven During Economic Depression
Gold’s performance during the 2008 Crash reveals the extent to which bullion is accepted throughout the world as a safe place to invest. The race to purchase gold during a recession or a collapse results in higher gold prices. This is exemplified in the above graph.
Reason #3 Gold Bullion Can Be Stored However You Want
A little bit of gold can hold lots of value. Gold is also resistant to moisture. Therefore, it is an ideal asset to store wealth. Gold can be kept by an individual. Gold can also be safely stored nearly anywhere, including overseas. I would suggest Switzerland. A great majority of gold purchasers around the world that choose to store their gold abroad choose to store it in Switzerland.
Gold is very easily acquired from online brokers. Commonly bought pieces range from 1/50th oz. gold coins at about $50 to 100 kilo bars at about $44,000).
Gold is a one of a kind investment. It is tangible, maintains its wealth, and can easily be stored. Furthermore, it outdistances the stock market over the long haul. Gold increases in dollar value, thus keeping pace with inflation. Also, gold keeps value whereas dollars decrease in value.
It would be wise to invest 5% – 10% of your savings or retirement portfolio in gold bullion. (Click here to learn more about investing in gold and other strategies to hedge against inflation or collapse.)
Perry Kyles, PhD received his PhD in World History with an outside area in Global Economy from Florida International University. The knowledge that is shared in this text originates from his experience as a scholar, investor, and global citizen.