Updated: Oct 17, 2020
In the current climate of uncertainty and financial upset a safe haven to park assets is always welcome and gold has traditionally been a safe haven but Why?
To answer that question let us first look at the traditional savings. For the most part this is banks, savings accounts, investments in stocks and shares. Money in short. But money, being basically just an ideal backed by confidence, is subject to the whims and frailties of the stock markets, futures market and political events that affect those arenas.
“Gold, however, has for thousands of years been a safe and stable investment. While the value of money drops at a steady rate, gold continues to hold its own value. .”
In terms of the dollar (ir any other currency for that matter) gold has apparently increased in value over the years. In fact it has not. If one was dealing in gold then one ounce of gold would purchase exactly the same value goods and services now as it did fifty years ago. What has happened is that the value of money has dropped so much so that now a lot more of it is needed to purchase that ounce of gold and therefore the goods and services that one ounce can buy.
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It is true that one cannot earn ‘interest’ with gold. But its value continues to go up very satisfactorily far and above any interest accumulated as a result of an investment. In fact over the past 20 years gold has increased in value 602.63 percent. That is far far better than the paltry interest of one or two percent offered by the banks.
So what is the best way of buying gold and from where? Gold bars can be purchased in Australia from the Perth Mint and Gold Bullion Australia among other places. One can have it shipped to one’s home or just stored in vaults around Australia. And the bar can be as large as 400 ounces or as small as five grams. Also coins can be purchased although they tend to carry a higher premium due to the cost of manufacture.
Keeping a portion of one’s assets in gold or silver is a wise move since regardless of what happens in the market gold, and even silver, are an ideal way to preserve some assets away from the trials and tribulations of the modern day financial world.