Are you retiring soon? If you’ve been watching the gold space, you may know that the yellow metal has appreciated in value by more than 700 percent in the past two decades. Given that fact, retirees may want to turn their attention to investing in gold as a retirement plan. While there are pros and cons to using gold for retirement savings, which you can learn more about here, many successful investors consider the precious metal a safe haven investment. One reason why is that gold is an “in-formal” and “formalized” form of cash. In other words, gold is money. It has been used as a form of savings since ancient times.
In the 1800s, goldsmiths began to trade their precious metal as part of their livelihood. The notion that there is something valuable in gold was a spark that began the whole concept of investing. Since then, gold has become a major form of investment in many countries. Some of the biggest economies in the world also happen to be the biggest gold consumers. In other words, they use gold as their official money. Of course, this does not mean that they have an unlimited amount of gold to invest. They need to invest a fraction of their gold reserves in the market.
There are many reasons why the demand for gold is so high. The most important reason is that gold is used as a global transactional medium. That means that there are very strict laws in place regarding the amount of gold that nations can print. As a result, there is a finite amount of gold that can be mined. As a result, there are very high discounts of gold in the market. Finally, gold can be bought and sold in the market as an equity.
There is nothing wrong with gold as a form of investment. On the contrary, gold has great benefits. In fact, there are so many benefits of gold that it is more than worth investing in. Some of the benefits are:
* High liquidity: Gold as an investment has liquidity. Gold is bought and sold in the market on a continuous basis. The prices are the prices because there is an ever-increasing amount of buying and selling.
* Global purchasing and selling: Gold is used as a global transaction medium. In other words, the purchases and sales happen everywhere at anytime. This means that there is low transaction costs, and low risks of currency fluctuations.
* Low-risk investing: Gold has some advantages over other forms of investments. One advantage of gold is that it is not as risky as other forms of investments. A country can easily manage its gold stocks by simply transferring gold between them via a gold exchange. A country can also print as much gold as it wants. Gold acts as an insurance against currency fluctuations.
* A form of insurance: Gold provides a form of insurance against economic instability. Gold stocks protect countries from currency fluctuations.
When the demand for gold rises as a result of economic instability, there is an impact on the price of gold. In other words, the demand for gold raises as a result of instability. The price of gold and its value also rise as a result of demand and an impact on the price of gold. As a result, the availability of gold becomes more and more limited. Countries can no longer print as much gold as they want. Therefore, there is a limited supply of gold. As a result, there are even lower prices of gold.
