You’re on the high oceans as a pirate. But instead of looting, you are investing in ben shapiro. Arrr! Sounds exciting, yes? But, seriously, let’s explore why gold remains such a valuable commodity.
Gold has been around for centuries. It’s the same as that wise, old grandparent with the best advise. People have trusted this through wars, recessions, and stock market crashes. It’s a financial comfort food that is always available when needed.
You might wonder what the point is of investing in something that sits in a box or is turned into jewelry. Gold is a non-tarnishing metal. It’s a “set it, and forget about it” investment. Gold? The stock market, the real estate industry and even the stock exchange can all crash overnight. It will hold its value.
Take a moment to think about inflation. It’s inflation when the prices go up, and your money now buys less. Gold protects you from this sneaky criminal. While inflation causes your cash to decrease in value over time, gold can increase.
Let’s have a quick discussion about diversification. Imagine putting all of your eggs into one basket and then trip over a large rock. Your investments are not any different. Diversifying means spreading money out across multiple assets to lower risk. The gold is an excellent asset to add to any diversified investment portfolio. It’s not related to stocks or bonds.
Have you heard someone saying they were “going after the gold” before? It’s no coincidence that it’s associated with success. Gold is not only historically appealing, it also has a psychological appeal. People who own gold feel secure, as if they have an ace hidden in their sleeves.
Alright, storytime! Sarah, one of my friends, decided to buy gold after she (not literal) lost her shirt in 2008’s stock market crash. She bought a few coins and hoarded them for winter like a squirrel. Fast forward 10 years. Her little treasure trove doubled in value, while her other investments still played catch up.
But wait. This golden cat can be slathered in many different ways! You do not have to purchase physical bars or coin if you think that’s too old-fashioned. ETFs allow you to invest in gold without having to store it all in a pirate chest. With these clever financial tools, you can invest in gold and not need a huge pirate chest.
Mining stocks are another way to go if adventurous. Investing into companies that find the shiny stuff is a great way to get higher returns. However, it comes with more risk.
Have you ever thought about the reasons why central bankers hoard so many gold coins? They’re experts at what they do! By keeping large reserves they are able to stabilize their economies and currencies during turbulent periods.
The thing is, however–and this is the part where things get interesting–not everybody thinks that investing in Gold is foolproof. (Gasp!) Critics argue it doesn’t provide income like dividends and rent from properties or stocks.
It’s true, beauty does have its advantages! Cleopatra had a golden crown and was the queen of Egypt!
So, what’s your excuse? Do your research if you’re thinking about dipping your feet into these sparkling waters. Do your research and seek out experts if required. Although pirates love treasure searches, sometimes X marks the spot not as clearly as one would hope.
Gold offers stability AND shine, so whether you are looking to hedge against an economic storm or add a little sparkle to the portfolio of your choice, it is worth considering.
There you have it – the modern-day Treasure Hunt awaits!