Why Is Gold Considered A Precious Metal?
Besides cash, gold remains the best way to measure wealth.
Gold is a precious metal that has fascinated humans for centuries, and is so coveted that there have been many wars fought over it.
While those who understand precious metals know that gold is not rare, it isn’t easy to find and extract, making it immensely valuable.
Why Is Gold Held In High Esteem?
The value of gold is contested, since some people state that it does not have any intrinsic value, and paper money is a better alternative.
Conversely, other people consider gold to be an asset and a reliable and necessary addition to their investment portfolio. Additionally, there is a particular mystery surrounding gold.
While gold is something tangible and quantifiable, it evokes a subjective feeling too. It represents a personal experience for many and embodies the ephemeral.
Gold And Psychology:
While gold cannot immediately replace paper money, it is still held in high regard for some of the following reasons:
Gold Is Sustainable:
Gold is considered a sensible choice for long term investment in money. If a situation occurs in which paper money and our current economy goes obsolete, gold is the best alternative we have.
As such, gold is one of the only metals that is long-lasting enough to be considered suitable to replace money, and it can sustain its value over time.
Perceived Value:
A bar of gold may not be able to sustain you if you do not have food or water available, but society sees it as a measure of value that can be converted into coins that initiate a system of exchange of goods.
Because of this, the gold bar holds its value and is considered precious.
Because society thinks gold is valuable, you find it valuable too, and similarly, because you value gold, others can also see its value.
Conclusively, gold is the most sensible choice when it comes to valuable metals. Gold doesn’t corrode and has a sustainable value, drawing humans to it.
These reasons make a good case for why you should add gold to your IRA. Orion Metal Exchange can help you invest in multiple elements, including gold, for a more controlled self-directed IRA.
Find out more about investing in gold and silver responsibly by contacting us here.
