Following the creation and use of Gold as a means of currency and exchange, Its Importance to society still continues to grow. History has already made it clear that Gold has had its influence in many great empires and eras, besides being the means of currency and gauge of wealth, Gold has also been a safe haven for the rich throughout history. It has preserved the wealth and power of many families and great people time and time again.
Gold and its Impact on Modern Society
One would ask, “Why would investing in Gold be so Important these days?” Simply put, although Gold is no longer in the forefront of everyday transactions, it still holds great importance to the Global Economy and still proves to be a secure way of preserving one’s wealth. During the 1970s, one ounce of Gold was equivalent to $35. Let’s say you were there during that time, you could choose to hold the Gold or hold $35. With either of the two, you could already buy whatever you want. Let’s say you could buy a watch. If you had that ounce of Gold today and converted it to its current price you could still be able to buy a brand new watch, but unfortunately, with the $35 during that time and converted to today’s prices, you won’t be able to do that because of Inflation. So you would already have lost a considerable amount of money if you chose to hold that $35 rather the one ounce of Gold.
Why is Gold Better
Gold becomes a safe haven.
Political and economic uncertainty is always a big problem when it comes to investors worldwide, hence, these investors would choose to position their wealth on Gold as a safe haven during these uneasy times. History is full of rising and falling empires with countries’ economies plunging down and currencies collapsing, but through those times, investors and rich families who held on to Gold were able to preserve and sometimes double or increase their wealth. Gold has also saved many investors to escape the financial troubles of that time which helped them weather out the storm, thus making Gold a safe haven to many investors worldwide.
Gold becomes a Hedge against Inflation and the Decline of Currencies.
When you invest in Gold, this becomes a Hedge against rising inflation and the fall of the U.S. Dollar. Historically Gold has served as a Hedge from these two major problems, with the rising Inflation gold typically appreciates and when investors find out their money is losing its value, they would rather choose to put in on a hard asset that will maintain its value, by which Gold has been a prime example.
The reason gold benefits from a declining U.S. dollar is because gold is priced in U.S. dollars globally. How do you ask? Well because to invest in gold you need to sell your U.S. Dollar to make the transaction thus making the U.S. dollar lower as global investors seek to diversify out of the …read more
Source:: Gold Silver Worlds
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