Gold is one of the most precious metals in the world and has been for years. Here are five reasons why every time you decide to purchase a piece of gold jewellery, you're investing in your future.
1. Has a History of Retaining Its Value
Gold is treasured all around the world due to its precious value and rich history that has been entwined into cultures for so long. The fact that it can only be found in selected parts of the world makes it a rarer metal, which contributes to why it's been able to retain its value throughout the years. People see gold as a means to preserve their wealth for generations. So the next time you decide to purchase a piece of gold jewellery, give yourself a pat on the back for envisioning beyond your years.
2. Provides a Hedge against Inflation
Historically, gold has acted as a brilliant defence against inflation. This is because, contrary to paper currency, gold's value tends to increase with increased costs of living. Therefore, investing in gold jewellery is sometimes a much better option than investing in the stock market. Besides, you cannot wear a stock around your neck to dinner.
3. Protects You From the Effects of the Weakening Dollar
The US dollar is one the world's most significant currencies in the world. When its value falls against other currencies, it prompts people to secure their assets in gold, thus raising the price of gold. The weakening of any currency is not something you can prevent. But having bought a few jewellery pieces of your own will ensure you don't fully feel the effects of the dollar weakening for whatever reasons.
4. Cushions You against Deflation
Deflation is generally a period where economy slows down due to excessive debt, and the levels of prices in the economy decrease significantly. During the Great Depression in the 1930s, the general population of people lost tons of money and property. However, the prices of gold were not affected. If anything, they soared higher. Investing in gold jewellery will ensure you do not suffer such a great loss just in case something like that happens again.
5. Has an Ever Increasing Demand
The demand for gold has always been on the rise with the increase of wealth in emerging economies boosting it even higher. Many countries are building larger gold reserves every year to purchase enough gold to back their currency. China and India are among the bigger consumers of gold. Thus, having a few pieces of gold jewellery will ensure you have some collateral come the day that you need to borrow a loan or sell them altogether.
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