Why Gold Is Considered a Safe Haven

gold Over the years, you may have heard many experts recommend investing in gold. However, it’s possible that your financial advisor has not talked to you about gold as part of your retirement portfolio. If this is the case, it’s definitely to your advantage to learn more. You can invest in gold for your retirement and there are very good reasons for doing so. Historically, gold has been one of the safest places you can keep your money. Why is gold such a safe haven?
Gold as a Historic Safe Haven
If we go back a little less than 100 years, we can see why it’s so important to have gold in your portfolio. In late 1929, just before the famous stock market crash, gold was selling for about $283.99 an ounce. For the five years prior, gold had stayed relatively stable at this value. After the crash and the subsequent Great Depression that followed, gold prices rose rapidly, reaching an all-time high of $628.71 in 1934.
In 1976, with the world in the midst of an oil crisis, gold dropped to $453.50 an ounce, and many may have thought of it as a frivolous investment. Those who had the sense to hold on to their gold, or even buy more, saw their investment nearly quadruple in only four years, as by 1980, gold had jumped to nearly $2,000 an ounce!
Although the value of gold has experienced some dips over the years, it always bounces back. Unlike other investments, the value of your gold can never drop to zero, making it worthless. If you own stock in a company that fails, an eventuality it’s impossible to completely foresee, your investment is worth nothing, no matter how much you put into it or how long you held it for.
Gold Vs. Other Forms of Currency
Gold has historically been used as a form of currency – in fact, the U.S. dollar used to be based on the gold standard. How does it compare to other forms of currency? Gold coins may be assigned different values in different cultures depending upon their economies, but they will always have value stemming from the intrinsic value of the gold the coin is made out of. Other currencies are only worth the paper they’re printed on.
What happened to people who invested in foreign currencies before the European Union? With the introduction of the euro, currency like francs and lire are practically worthless, other than their value as collectibles. The British pound was worth more than $2 U.S. dollars as recently as 2008. Today, in the wake of Brexit, it’s just worth a little over $1, and some experts predict its value is still dropping.
Massive global changes like these are unlikely to hurt the value of gold and may even increase its value. When one thinks about how long gold has prevailed as a form of currency, especially relative to all the other currencies that have come and gone over the centuries, it’s easy to see why gold is such a popular investment.
Gold as Retirement Protection
Learn more on how you can protect your retirement assets by investing in this safe haven by contacting our gold experts at Fortress Gold Group. Fortress Gold can tell you everything you need to know and help you secure your future with gold.
Contact Fortress Gold Group today and speak to a precious metals expert at 1-800-777-6177

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