While most people invest in gold simply as a way to increase their own wealth and accrue capital, gold is also a wise investment to make in times of economic and political uncertainty. Precious metal investing isn’t tied to the success of any government, market or economic system—as a result, gold investing is an excellent way to safeguard yourself and your household against adverse economic and political circumstances.
From contemporary Venezuela to the late Roman Empire, failed states and economic systems have left untold numbers of people without access to food, clean water and financial structures. Those with gold investments, however, have been able to more easily navigate the challenges of life after massive governmental and market failure.
Here are just some of the circumstances—any of which could strike at any time—that will cause you to be thankful for your gold investments:
- Inflation: The most striking recent example of inflation gone awry occurred in Zimbabwe in the late 2000s. Mismanagement of the country’s currency led to a rapid depreciation of wealth and assets. A similar catastrophe is currently occurring in Venezuela. When currencies inflate so rapidly, a life’s savings can quickly become worthless—unless, that is, that savings takes the form of a precious metal, independent of any central banking system.
- Deflation: In times of deflation, business activity slows and prices decrease. This encourages companies and governments to take on massive amounts of debt, and typically results in substantial layoffs. Gold provides people with an excellent safeguard against the whims of deflation. Because gold doesn’t rely on economic conditions for its value, its purchasing power remains steadfast even when other currencies lose value.
- Geopolitical spats: As evidenced by the ongoing trade war between the U.S. and China, as well as the U.S. and its economic allies, geopolitical differences can tremendously affect a fiat currency’s purchasing power. When these types of geopolitical disputes begin to impact a currency’s value, that currency may begin to lose value rapidly thanks to uncertainty. Gold, however, usually sees its value skyrocket during times of uncertainty.
- Domestic uncertainty: There’s nothing more unsettling than the idea of massive political unrest. While it may seem unlikely that the kinds of systemic failures experienced by countries like Zimbabwe and Venezuela could ever occur in the United States, it’s important to understand that political uncertainty can strike when least expected. Massive amounts of governmental and consumer debt are often indicative of economic trouble; when economies fail, however, gold always retains its value.
Gold Wealth Financial is a full-service investment firm offering advice and investment opportunities for people hoping to get started in precious metal investing. If you’re looking for a creative way to safeguard your assets and ensure that you and your household will have access to food, water and medical support in the event of a governmental or economic failure, consider investing in gold, silver and bronze today. Our friendly advisors are here to help you make decisions that will allow you to safeguard your financial future, regardless of external circumstances.
- by Steve Hunt
Categorised in: Precious Metal Investing