Where did it all start?
Gold is one of the earliest commodities humans utilized for conducting trade and settling personal debts. It’s viewed as a safe, conservative investment and many individuals even consider gold to be a type of savings account. As an asset class, precious metals and gold, in particular, transcend fiat currency and are a time-tested wealth preservation strategy.
Born from a supernova and settled across the stars, gold is a noble metal that’s been captivating humans since before the dawn of civilization. Our connection to gold dates back millennia, although the exact details are not entirely clear. What we do know is that gold was originally collected in its natural state for use in barter and decorative ornamentation. The earliest known preserved artifacts of the yellow metal date to Ancient Egypt around 4000 BC, where gold became an integral part of culture and was worshipped for its beauty. Gold’s use as a medium of exchange was further solidified when the Lydian Kingdom, in modern-day Turkey, minted the first gold coinage in the 7th Century BC. Over time, gold became a universal symbol of wealth, the money of kings.
It’s astonishing that so many different cultures throughout history, with zero known interactions, determined gold to have real, intrinsic value - although perhaps not as astonishing after you’ve gotten your first glimpse of it. Today, mining outfits expend tens of billions of dollars annually to extract gold from the earth’s surface and refine it down to its purest, elemental form.
All that trouble for a shiny “rock”?
Gold is a rare mineral renowned for providing portfolio stability during times of financial crisis while simultaneously shielding your long-term purchasing power. It accomplishes the ambitious task of future-proofing a decided allocation of your hard-earned savings. Physical gold sits outside the modern financial system, liquid and readily convertible to the prevailing national currency. Modern society demands every ounce of annual mining output, ensuring that there is never a shortage of demand for gold. And when we say society, we mean central banks, financial institutions, global powers, and a multitude of retail investors.
To meet the demands of this diverse array, investment-grade gold comes in many shapes and sizes. There’s something for everybody, from gold coins to kilo bars to 400oz LBMA Good Delivery bars and even wearable jewelry.
But there must be some drawbacks?
Critics have described gold ownership as cumbersome, expensive, and potentially risky. And while you must take appropriate precautions to store your bullion safely, there are clear steps one can take to mitigate potential threats. This includes investing in a proper safe and exploring insurance options to ensure appropriate coverage. For added peace of mind, a portion of your holdings can be stored securely with a professional vaulting service.
Gold, like most investments, is subject to market swings which at times can appear somewhat volatile. But when we look at the bigger picture, gold has been caught up in a 20-year, secular bull market. Between the Federal government’s policy of ever increasing, deficit spending and the continued easy money policies from the Federal Reserve, there’s substantial likelihood gold will continue to shine.
So, what’s next?
US National Debt recently surpassed $30 Trillion and there's no apparent end in sight. At the present juncture, allocating a portion of your investment portfolio to assets devoid of counterparty risk, also known as the risk of default, is more critical than ever. As mentioned earlier, gold sits outside our financial system. While traditional investments absolutely have a place in your portfolio, the associated risks are often overlooked and need to be considered. Gold cannot be rendered worthless like stock certificates of a bankrupt company or a debt instrument such as a bond that cannot ultimately be repaid. Thousands of years of history has proven gold to be the ultimate portfolio hedge and the perfect store of value.
Browse our selection of in stock gold bullion today!