Is Gold A Long-Term Investment?
As the world goes through a recession, many currencies are losing their value. Property prices are declining in various prices and all those things that held value, are slowly seeming to lose it due to the predicted economic slump.
Gold, however, has held its value throughout history. In the face of recessions, booms, growth and slumps, gold has not lost its worth and has remained an excellent investment choice for those who can afford it. If you’re wondering whether it’s worth it to buy gold, we’ll explain to you why it is.
Gold Holds its Value During Inflation
When inflation occurs, the value of money falls. This means that with the same amount of money, you’re able to buy less. Gold holds its value or even increases in value in times of inflation.
So, while your money may be able to buy you much less than before, you’ll actually be getting richer because the gold in your vault will be increasing in value without you having to do anything.
The Worldwide Supply of Gold is Decreasing
When the supply of something valuable decreases, it becomes more valuable. This is why things that are rare hold more value. Because of complications in mining and extraction of gold reserves, with every passing year, gold production is reducing.
This means that if you buy gold right now, in a few years, since the supply of gold will have decreased significantly, your gold will have increased many fold in value.
Apart from this, lower production also means there will be a rising demand, and if need be, you can also sell your gold for a much higher price than you bought it.
Global Debt is at an All-time High
When global debt is at a high rate, chances are, inflation is bound to rise in countries that are in debt. In times like these people need to invest in assets like gold that will hold their value.
The growing trade deficits make all other forms of investment a risk, but since the value of gold is historically known to increase when times are bad, this may be the best time to invest.
If you’re looking to invest in gold to make money, or to buy gold bullion online, Orion Metal Exchange is the perfect solution for you. With the best gold coins for investment and private vault storage, we are the answer to all your precious-metal-related concerns.