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Why You Should Store Gold? : Here Are Very Good Reasons For You!

September 27, 2022
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Is gold a good investment? Why should you have it? What risks does it carry? Is it a good investment in the long run? An investor can wonder if a particular asset is a good investment. This of course also applies to gold, which is a very popular investment resource today. Gold is an investment tool that always attracts attention. Gold is one of the oldest investment methods; Since it shows a more stable stance in the face of fluctuations in the markets, it is also preferred by investors who are looking for safer ground while investing. Gold is a security for the crisis as it stands for trust – at least not in the form of derivatives or some kind of futures when bought physically. Physical
gold is an asset that will always be valuable.
Physical gold assures you against any crisis.
Gold has no obligation to any organization or country. For this reason, gold, which follows a more balanced line against financial fluctuations, is considered one of the most reliable instruments in investor portfolios.

We had a major economic crisis in the past, and according to some experts, this crisis has not reached its peak yet. Gold prices, which quadrupled between 2001 and 2011, peaked in 2011. Especially the years of the economic crisis were difficult times for the stock market and investors. Many feared that the euro would collapse, which greatly increased the demand for gold. If another financial crisis occurs or if any currency falls, gold will likely retain its value, or even appreciate. As a result of the crises experienced in the past, we observed that people’s confidence in gold increased in moments of uncertainty.

Is There a Risk in Buying Gold?

There is both opportunity and risk in buying and selling gold like any investment. In addition to fluctuations in gold prices, currency fluctuations are also a reason why your gold appreciates or depreciates. For example, a fall in the price of gold in US dollars does not automatically mean that your gold has become less valuable. As long as the US Dollar is strong against the Euro, profits can be made in the Euro as the price of gold in US Dollars falls. This is a very common occurrence in recent years.
Gold has been a valuable investment tool always. Particularly in times of crisis, it is a very good approach to distribute your assets wisely to minimize risk and buy real value. The past years have told us that gold is more likely to retain its value, even as the value of other investment vehicles declines. Therefore, gold is ideal for long-term investment.

Why Should We Buy Physical Gold?

Owning gold means you don’t have to worry aboutchanges in earnings reports, dividends, and interest payments. This frees up gold to do what it has been doing for thousands of years. Because gold is nearly indestructible, it will outlast you and your heirs. This highlights a critical point: To get all these benefits, you have to buy physical gold. Gold bullion is like coins and bars, not paper forms like ETFs or futures contracts.
You will see many advantages of doing this. Here are the top reasons for every investor to buy some gold bullion with an emphasis on investment results:

 A Safeguard in Times of Crisis

Gold has been a store of value for years. One of the strongest advantages of gold is that it can protect your investments and even your standard of living in times of economic, monetary, or geopolitical crisis.
And depending on the nature of the crisis, gold can transform from a defensive tool to an offensive profit machine. When a crisis arises and creates fear, gold is a natural haven. It is fear that drives people into crisis, so the greater the anxiety, the more gold is sought and the higher its price. We can talk a lot about various possible crises today, but the point is that the level of risk in our economic, financial, and monetary systems is high. There are so many risks that the gold price is likely to hit all-time highs in response to some of these crises. The second half of the 1970s was a troubled time; There
were interest rates above 15%, high unemployment, 14% inflation, an energy crisis including the oil embargo, the Soviet occupation of Afghanistan, cold war tensions, and recessions in both. the beginning and end of that period.
 

Gold cannot be inflated as easily as fiat currencies such as the US dollar or euro. It is no coincidence that gold performs well in times of high inflation, and that as people lose confidence in other currencies, they rely on it or at least fear that these currencies will be less valuable in the future. Gold offers lower risk, greater security, and greater return than any other investment.

No Counterparty Risk

If you hold gold bullion, you don’t need a paper contract to make it whole. No intermediary or other party is required to fulfill a contractual obligation. This is because gold is the only financial asset that is not simultaneously a liability to another business. This is important because gold will be your haven when a crisis strikes. This is a powerful tool to have on hand when things start going wrong in your country or economy. It is also an important scale that gold never falls to zero. This has never happened in the history of gold. This is a really powerful feature when you consider it. Gold will always be valuable. If you need currency you can always sell it.

 Gold Is a Tangible Asset

If you buy physical gold, you can keep it, something you cannot do with any other investment. Real gold cannot be destroyed by fire, water, or even time. Gold being a tangible asset has another advantage: it cannot be hacked or deleted. Unlike payment services such as brokerage accounts, bank accounts, and credit cards, gold bars are out of reach of hackers and identity thieves. In today’s world, it’s probably a good idea to have some of your wealth outside of the digital form. If there is no internet or your online world crashes, the gold you have will not be affected. It can be your lifesaver in this situation.

Gold Is Easy To Store

One of the most important issues regarding physical gold is where and how we store it. Storing gold may not be as complicated as it seems. You can store your gold in a safe place in your home or you can get a safe. While professional storage comes at a cost, vaulting fees are generally low. Remember that gold is value dense. This means it packs a lot of value in a
small space. You can keep large amounts of money in the palm of your hand thanks to gold. As a result, gold storage is low maintenance, low cost and requires little storage space.

Gold Can Be Anonymous

 How many assets can you say that about in today’s world? If you want some privacy, physical gold is one of the few assets that can provide it. Keep in mind, though, that you must report any earnings from your income taxes. Gold is one of the very few investments that can be anonymous. No one needs to know you own it unless you tell them to. Almost no investment you can make has such an advantage. If you want a truly special form of wealth, gold is one of them.

Physical Gold or Gold ETFs?

Physical gold gives you a layer of protection and security that Gold Exchange Traded Funds (ETFs) do not. You can hold physical gold; You are in control of your wealth, which is the
only way to protect your assets and protect yourself from financial ruin in the worst-case scenario.

Physical Gold

Gold ETFs

Control over your wealth

No real control

Personal security and peace of mind

Trust in a third party is required

Secure investment

Speculative investment

A unique element to your portfolio

Similar to any other share or fund

Low risk

Higher risk

Crisis insurance

Open to the same risks as all investments

Timeless asset

Not an asset

Keep for generations

Too risky to keep for generations

Long term

Short term

Potentially profitable

Also potentially profitable

Conclusion

Whether you’re a pensioner with little savings or a billionaire businessman, holding physical gold is an excellent way to protect your future and your family’s future. Gold is easy to store. Also, you don’t need to be an investment expert to buy it. Once you receive it, it becomes a good assurance for your future as long as you keep it safe. As we have seen in the economic crises in the past, gold is one of the rare investment doors that usually rise in value in times of crisis. It may not be safe for everyone to open an internet account and store their gold there. In such cases, you can buy physical gold and store it in your home or a safe. However, it may be better for you not to invest all of your investments in one place. Diversification is smart. Just as it was a good place to invest in real estate before the 2007 crisis, gold is now a safe investment. Since physical gold is the best way to protect your other investments, it is helpful to diversify your investments.

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