The Ultimate Reasons For Owning Gold

...Those looking for a return on their money in currency terms perceivegold rise gold as an investment which they can sell at a currency price higher than what they bought it for. We would argue that...[that] defeats the purpose of owning gold in the first place - insurance against the failure of fiat currency, not a means of accumulating more of it. [As such,] the healthiest and most natural way of looking at gold is to view gold as savings or as a form of wealth preservation.

By BullionStar.com

Gold is, and for thousands of years has been, the focal point for prominent savers of wealth. The European aristocrats, the Middle East oil barons, the ultra-rich, and even the central banks, all save in gold to preserve generational wealth.

  • They save in gold without thinking about the return in currency terms because they understand the fundamental principle of gold as a generational and long-term store of value.
  • They understand that gold is not an investment but that its a form of money that cannot be printed or controlled by central bankers.

As the world's financial and monetary systems become increasing fragile, saving in gold is the ultimate safe haven for protecting you against a systemic collapse. In the inevitable transition that will follow such a collapse, holding gold as wealth is the ultimate strategy for survival.

Prudent savers understand that gold cements wealth over time which is why you do not need to care much about the ‘gold price’ as denominated in fiat currencies. If you do not want to bear the high risk associated with chasing returns on the currency markets, you should save in physical gold because gold is the safest form of liquid money. Staying liquid is the same as keeping your wealth in gold. There is nothing wrong with investing, but buying physical gold is not an investment in the real sense – it is a timeless wealth-preserving asset...

If gold is viewed from a western investment portfolio perspective, studies have shown that the gold price is inversely correlated with the prices of most other financial assets (as it is not as dependent on economic and business cycles as most other financial asset or commodity prices). Adding gold into an existing investment portfolio can therefore lower portfolio risk...Optimal allocations of gold in multi-asset portfolios...are usually found to be in the 5 - 20% range.

Work and invest to acquire currency but hold your wealth in gold. This is the fool-proof strategy that has worked for thousands of years. Saving in gold frees your mind. With gold, you can sleep well at night and...not need to worry about inflation, financial markets and currency risks. By saving in gold you can stand strong and avoid the flawed western mentality of chasing paper money returns.

This article may have been edited ([ ]), abridged (...) and/or reformatted (structure, title/subtitles, font) by the editorial team of munKNEE.com (Your Key to Making Money!) to provide a faster ...

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Donald Kaplan 8 years ago Member's comment

Who knows, now that #GaryJohnson is the Libertarian's 3rd part candidate for president. If he wins, the US could be back on the #gold standard.

Angry Old Lady 8 years ago Member's comment

Excellent points, though I've heard many times that Lego blocks are a better investment than #Gold! :)