We usually hear a lot about gold in times of economic crisis, because this metal is considered a safe haven.
We usually hear a lot about gold in times of economic crisis, because this metal is considered a safe haven. But many people use this term without really understanding its definition. For we too often forget that gold is much more than just raw material for almost thousands of years this is the best way to store wealth. The first coins used by humans were obviously gold and in some parts of the world it is still possible to pay in gold.
Because gold has a huge advantage over fiat currencies is that it has an intrinsic value. The paper currency that is normally used as the dollar or the euro derives its value from the promise of the state that issues them. But this value is variable, it depends mainly on the money supply in circulation. More state emits ticket and the value of the currency down. As a result, your purchasing power decrease and you lose money while the money available on your banker account has not diminished, this is the way that states are pumping your wealth. For as gold is against a first value that has its own value, the market price increases gradually as the currency depreciates, it is the best way to fight the vampires of the economy.
But gold has another distinct advantage, as its value is not tied to fiat currencies, buying gold, you effectively save your savings all the economic turmoil or financial crises. And this is why it is important to have gold in your investment portfolio. This way even if all the economy collapses, you will have a good that can be exchanged against goods or services. And the same principle works in any parts of the world. All cultures and civilizations have always placed a high market value of gold. So as prevention is better cure, invest some of your money in precious metals and you will parish all situations.
Now that you understand why it is important to invest in precious metals, you will surely ask how to invest. Firstly if you invest in precious metals to protect yourself from a huge financial crisis, it is essential to buy physical gold and do not store it in the bank. Then if you're wondering what to buy, I'd say it depends on the capital you need to place. The ingots have the advantage of representing are much larger, and therefore more practical for large investment. By cons parts are much easier to carry and sell. If you ever need to use a small amount of gold to buy goods, the parts will be more practical.
But as you will soon understand, invest some of your savings in gold, is only the beginning of the process. The most important is to learn to make the right choices at the right time and that the only solution is to increase your financial education.
