Hi,
When people think of insurance, they typically have images of protecting themselves against unexpected events such as car accidents, medical expenses, or house repairs. But what about your financial future in this unpredictable world that is experiencing economic irregularities, debts, and market fluctuations? Gold is, without doubt, a financial insurance tool that is never obsolete.
Unlike other paper assets, which require governments, banks, or stock exchanges, gold provides you with one thing that is extremely simple and powerful, and that is actual ownership.
What ‘Financial Insurance’ Actually Entails
Financial Insurance is not about making fast money; it is about securing your funds when all else is up in the air. It is that umbrella that protects your nest egg from inflation, recession, or political volatility.
And that is precisely what gold is all about. Gold is not dependent on profit-earning companies, monetary policies, or promises made by organizations or institutions. Gold just is, and that is its value.
Gold’s Past Performance is its Best Advertisement
Gold has always remained steady wherever currencies have failed or markets have crumbled throughout history.
When the financial crisis of 2008 struck, stocks fell dramatically, but gold rose by close to 50% relative to its price two years earlier
Gold pushed above $2,000 an ounce in 2020, a record as the world struggled through a pandemic and unprecedented levels of public debt.
Even looking back over the past few centuries, gold has always had purchasing power, meaning that what one ounce of gold could buy back in the 1800s can buy just as much today.
It is one of only a few assets that have never gone to zero.
Protection Against Inflation and Currency Devaluation
Every year, inflation slowly devalues your money. What you can buy for $100 today, you can buy only for $80 a few years down the road. Gold, on the other hand, acts differently.
When prices increase, gold prices generally move alongside them. Gold is thus a natural hedge against inflation, as it helps maintain your purchasing power despite devaluations of currencies.
Central banks are aware of this as well, and that is why many have been slowly accumulating gold holdings over the preceding decade.
Gold is Independent – and That’s the point
Gold’s actual power is its autonomy. Gold does not require any electricity, internet, or financial institution to be present or functioning. Gold is resistant to cyber attacks, crashes, or monetary policies.
During economic, political, or cyber crises, investors turn to gold as an alternative because gold represents a secure means that is not part of any system. Gold is money that can be held, moved, and trusted regardless of all that is going on around it.
Gold and a Balanced Portfolio
Gold has often been considered a harbinger of economic, just as you can’t drive without car insurance, you can’t invest without financial insurance, and that’s exactly what gold is for.
Financiers will typically advise that you dedicate anywhere between 5 and 10% of your portfolio towards gold or precious metals. Gold is not a substance that you invest in because of its potential for profit, but because of its ability to create balance and act as a hedge against market fluctuations that negatively impact your portfolio and reduce its value because of market declines.
The Bottom Line
Gold is more than a vintage investment – one that is outdated and no longer relevant – it is a classic hedge that transcends time itself, because gold is one thing that promises no ‘boom’ or ‘bang’ for your buck, but it is always there as your constant guardian, protecting your investment
Amid all the instances of inflation, debt, and market uncertainty around the world, one thing is certain, and that is that gold is truly a sort of financial insurance that is unmatched by any other kind of asset or commodity on this planet.
Use AU Bullion to Safeguard Your Finances
At AU Bullion, we facilitate investing in gold by offering competitive pricing, reputable products, and secure shipping throughout Canada and the U.S. If you are searching for gold bars, gold coins, or investment-grade gold bullion products, we have products minted by world-renowned organizations such as the Royal Canadian Mint, Asahi Refining, and PAMP Suisse. And visit us today online or at one of our Vancouver or Brampton branches, and begin assembling a portfolio that will secure your financial future through the enduring power of gold!
