In the dark tunnel of inflation and currency depreciation, the only bright light that shines is gold. This yellow metal represents money without borders, and it’s valuable in every corner of the globe. Every single day, people are losing trust in their governments.
It’s a modern phenomenon, and it’s going on in every country. The rise of the internet showed that the administration, politicians, and governments have been trying to hide a lot of their actions under the rug. The internet never forgets.
Plus, there has been an onslaught of propaganda and fake news, which led to people distrusting mass media completely. When this sort of thing happens, the only savior can be gold because it has no master. It’s the ultimate resource and the best hedge against inflation, deflation, stagflation, or economic disbalance.
Over the past couple of months, the Fed has been calling the inflation problem transitory. That means that it’s a single occurrence, and it’s going to pass soon. The only reason they said that was because the leadership positions were supposed to change, and they didn’t want to lose their jobs.
As soon as the voting was finished and they secured their positions, suddenly, inflation wasn’t transitory, and it became a real problem. The statistics are in, and the current rate is 8 percent, which is pretty close to double digits. The average return of the stock market is 7 percent per year.
This means that now, you’re losing one percent of your money if you have it invested in an index fund. What’s even more, if you’re keeping all of your wealth in dollars, then you’re losing 8 percent of your buying power per year. That’s why getting a gold IRA is a move that could save your wealth. Soon enough, the dollar could become worthless, which is why gold is the best possible asset to have.
How to secure your wealth?
Since saving and investing are not good options, gold shows up as the only possible outcome. But, a lot of people will be confused by it. When you’re keeping money in the bank in a savings account, the bank pays you a little interest.
When you invest in stocks, the companies that issued them out are paying dividends, and they also increase in price. Then, how does gold, which is a simple metal that just sits there and does nothing, overperforms these cash-flow investments?
The answer is quite simple. When the entire world changes, gold sits still and therein lies its power. That’s a bit vague, so we’re going to go a bit deeper. Over time, the population of the Earth increases. This means that there are more people every single year. However, the quantity of gold is limited, which means that there are more people that want to have it.
More demand when the supply is limited is tied to increased prices. It’s like an auction. When there are two people who both want the same thing, the person with the higher offer gets the item. The same thing is true in the free market, which is the biggest auction house in the world. Everyone believes that gold is money, which makes it incredibly expensive. Even the biggest critics go and buy it whenever there is a crisis because they don’t want to part ways with their wealth.
One of the best examples to learn from is Greece. When they experienced their national crisis, the first four months of 2010 felt like hell to the people living there. Visit American Hartford Gold Group Reviews if you want to read more. They were unable to get money from their ATMs, and people were waiting in lines to get their hands on bare necessities like bread.
During that time, more than 50 000 British Sovereigns were purchased from their central bank, and more than 100 000 were traded on the black market. This was just a single country that experienced a problem. Imagine what will happen now that the entire world is affected by it. It doesn’t matter if you agree or disagree with modern economists when it comes to whether gold has utility or not. The only thing that matters is whether you have it or not.
How to find a great company?
When the entire world was running on the Gold Standard, the precious metal was managing the currencies of the world. Now, that has been reversed. All of the valuable functions that were keeping the financial world in check are now wreaking havoc on the wallets of citizens. That’s why you need to find a reputable company to do business with.
There are some qualities that differentiate the experience and the service that you’re going to receive. First of all, you need to look for transparency and honesty. You need to know all of the costs without any hidden fees. Next, the broker needs to treat you like a friend that they’d like to help out. It doesn’t pay to hear a bunch of information in economic terms that you don’t understand.
You need to set a couple of goals and let them do the talking to see if your styles are compatible and whether you understand everything. Next on the list comes the behavior of the broker. Are they trying to make you buy numismatics that has high premiums because they want a bigger cut?
If you notice that they’re pushing for certificates, ETFs, and numismatics, then that’s a bad sign. Regular bullion and coins should be on top of your list since their value comes from the weight and the purity of the metal.
When you find a great broker, you wouldn’t need to pay attention to the news too much since they’ll be giving you updates on a weekly, bi-weekly, or monthly basis. The strategy that’s optimal for investing in gold is dollar-cost averaging. However, because inflation rates are extremely high at the moment, it might be smart to put all of your savings into it. Of course, there’s a risk that the economy will stabilize, but that all depends on whether you believe it’s the right move.