Precious metals have a history of safeguarding wealth even during periods of economic downturn according To US Money Reserve . Over period now, gold, silver, and platinum have proven their ability to outperform other asset types. Gold, silver and platinum are in a better position because economies all over the world are facing an array of troubles. Economists on goodsearch.com predict that the prices of gold, silver and platinum could hit high records in future.
The threatening of the U.S dollar and the ongoing geopolitical concerns worldwide are some of the reasons why more people are buying U.S government-issued gold. For some reasons, U.S government-issued gold from US Money Reserve is becoming more popular unlike in the past. Below are other major factors that explain why you should buy gold.
Stop trusting paper money
Looking at the history books on retailmenot.com, you realize that paper currencies are eventually collapsing and becoming worthless because the government that issues them falls apart. According to history, money falls suddenly unlike gold. The main reason being that gold is not at the mercy of governments, unlike currency. Gold has a finite amount of gold, and it cannot be expanded to suit political needs during an economic crisis. Therefore, people will support gold because it is scarce. Experts like US Money Reserve predict that with time the value for dollars will fall and that potentially increases value for gold.
Looming inflation and dollar death spiral
With the recent U.S economic downturn, the US Money Reserve has put trillions of dollars into the financial system. It hopes to spur a recovery. However, that is a recipe for inflation because when more dollars are in the system, each dollar that exists has less value. That is a more reason to buy gold because it could help in serving as a hedge to preserve buying power. Due to the anticipation that gold prices will go up shortly, it is the time that you position yourself.
Gold is becoming harder to find
Gold is scarce because no one knows how much gold is embedded in the earth. Due to the high costs of mining deeper to the ground and lower-grade sites, gold will always remain a rare commodity, unlike paper money.
Physical gold demand explodes
The demand for physical gold has been on the rise and statistics indicate that it increased by 70% from 2005 to 2013. In 2013, there was liquidation of 881 tons of gold from ETF holdings. That explains why there was downward pressure on gold prices, especially in China. If you are wise, enough you realize that the demand is increasing at a high rate.