THE GOLDEN CONSTANT
EVERYONE AIMS TO ACCUMULATE ENOUGH WEALTH TO ENJOY THEIR LIFE WITH PEACE OF MIND
However, this is becoming increasingly difficult when national currencies are steadily debased and can lose their purchasing power over time. As a result, people like us, all around the world have a hard time saving the value of their hard earned money for the future. Investing in precious metals will help you build a wealth that lasts and keeps the purchasing power of your fortune.
Purchasing power is the amount of goods and services you can buy with one unit of currency. You should start preparing now with the right kind of investments to make sure that the money you worked hard to earn today, keeps its value in the future when you need it.
Gold is one of the best possible choices: it retains its purchasing power over the long term despite the fact that the prices of goods and services are steadily increasing. You probably already heard the adage that throughout history, an ounce of gold could buy a quality suit at any point in time. In other words, an ounce of gold today can be used to buy a similar amount of goods as it could 100 years ago, proving that gold is superior compared to the other currencies. While some currencies keep losing their value – and even cease to exist – gold has a constant purchasing power over very long periods of time, a phenomenon which has become known as “The Golden Constant”.
STORE OF VALUE
PRECIOUS METALS HAVE OUTLASTED EVERY OTHER FORM OF MONEY OR CURRENCY AS A STORE OF VALUE
In fact, gold has been around as money and a means of preserving wealth for more than 5,000 years, while the oldest currencies have only a few hundred years of history. Past illustrates that gold is the eternal asset, proving time and time again that gold is an excellent vehicle to store value over long periods of time.
In a peaceful environment, the price of gold is rather stable and its value steadily increases. However, investors rush precious metal markets in times of economic uncertainty and market abruptions. Due to its role as a safe haven, gold tends to outperform other asset classes (like stocks and bonds) in volatile markets, gaining an advantage for the prepared investor over the panicking flock.
HOLDING ALL YOUR RESERVES IN NATIONAL CURRENCIES IS THE WRONG WAY TO STORE WEALTH, SINCE THEY CONSTANTLY LOOSE PURCHASING POWER
One of the crucial promises of money is that it serves as a store of value. However, most of the currencies available can not fulfill this promise. It turns out that national currencies can swiftly lose their purchasing power when compared to the current and historical purchasing power of gold.
This chart from the World Gold Council presents this idea very clearly: nothing holds value against gold over the long term. Over the past century, gold became the ultimate money: it is divisible into smaller and bigger amounts of value (e.g. per gram, per ounce, per kilo) it serves as a store of value and it is traded and accepted globally.
IT’S WIDELY ACCEPTED THAT AT LEAST 10% OF SAVINGS SHOULD BE HELD IN GOLD AS IT IS A RELIABLE AND TRUSTWORTHY ASSET
If you are an investor with a long term strategy, owning gold as a part of your portfolio instead of cash makes a lot of sense. Gold is not only a hedge against inflation or a safe haven in times of crises, but it can stabilize the performance of your assets due to its negative price correlation to most of the other asset classes. The gold market never sleeps – you can buy gold virtually any time you need to take up a defensive position, or sell when you need cash to utilize a good buying opportunity on other markets.
Our world is changing rapidly and sometimes unforeseen risks arise, strengthening the demand and raising the price of gold. However, these potential profits should not be the only reason to buy gold now. Owning gold means owning independence: gold represents value globally, and should be viewed as a very liquid security asset for you and your family when the need arises.
Thanks to the advanced technologies we use, buying and owning gold has never been easier and safer before. No matter what your investment size is, GoldTresor allows you to invest in precious metals in a safe, cheap and easy way. Whether you want to buy a few grams every month, or bring balance to a sizeable portfolio, GoldTresor is there for you 24/7 to buy, sell, deliver and transfer gold globally.