The human population appears to have settled on gold as an eternally valuable asset class for long term investing. Back in the day, people wore gold as jewellery in earlier civilizations to feel beautiful and have something valuable to take with them when they moved.
Consider a world where there is no payment method like cards or fiat cash.
How would you go about doing that? You would trade everything you own and convert it to jewellery, fly around the world, and then exchange it for real estate, foodstuffs, and funds to open up a new company.
Now, where does the value for investing in gold come from?
A Flashback From History
In modern times, most gold’s yearly extraction is used in jewellery (78%) and to buy and hold it (19%), with only 3% going to businesses like technology. Gold is a very efficient conductor, capable of carrying very small currents while being corrosion-free.
But present times are what they are, and we’re only thinking about 50–70 years here.
Sapiens first appeared on the Earth approximately 200,000 years ago in Africa, while archaeological discoveries in Southeast Asia include Homo Sapiens skeletons dating back roughly 100,000 years.
Despite money or gold, those prehistoric hominids got by quite well. It must have been at that time because the Lydians began producing gold coinage about 700 BC.
- The decision to support any financial investment is based on its backup in case you need it in the future, and gold is one of the easiest assets to liquidate. If you need to sell your gold to make ends meet, all you have to do is sell it to the bidder of your choice. There are always willing customers for gold.
- We all know that gold is a valuable metal. Gold is regarded as a family’s wealth. Investing in gold jewellery is a family legacy. It is passed down from generation to generation as a sign of inherited money.
- As rated by Raremetalblog.com, investing in gold can be one of the best decisions for newcomers. Gold investments give you enough time to understand the market with better returns and there is no hassle involved in the process so it will not overwhelm the investor. Whereas other assets need extensive research and experience to do things right.
However, many people may not see gold as a good asset depending on their situation
So they can go to an Avatrade review to locate a trading platform that fits their requirements in the best way possible.
Everything in life fades away, and its worth is nothing more than ash in the breeze but not GOLD.
Gold may not be the best investment for growing wealth, but investing in it does serve its function of preserving money for future generations at a low cost of ownership.
Is it a sure thing? No, but there’s a good chance it’ll have the same buying power in a hundred years as it does now.