Gold has been a part of human history since the beginning. For centuries from the pharaohs to the kings gold was associated with prestige, power, wealth and freedom. If you know little about this yellow precious metal, reading this information will be a great place for you.
So why do I say that gold is insurance during a crisis? Well, before we begin to understand this, I have a question for you; have you ever owned an insurance policy? If not, I imagine at least you’ve heard of insurance and have a basic idea of what it is. If you don’t, Investopedia, one of the best online financial education resources, defines insurance as: “a contract provided by a policy in which an individual or entity receives financial protection or compensation from an insurance company. Insurance policies are accustomed. hedge against the risk of financial loss. “Okay, so YES there was insurance jargon. To make it easier to understand, I’ll give you a breakdown of my non-professional’s term; insurance is just a promise to protect something in case of some form as a brief remark if you want to know more about some basic insurance products that are valuable and important, read my article “4 Pillars of Protection: Products to Consider in Your Insurance Portfolio”.
However, let me explain why gold is insurance in times of crisis.
As of this writing, our world is experiencing a global pandemic called Coronavirus disease either COVID-19. This stopped almost all regular daily activities, leaving a large number of the population of North America and the world disabled and limited to self-isolation at home. When I first received the news of this disease, it was in late December 2019. At the time, one ounce of gold was approximately $ 1,515. Then, a few short months after the virus accelerated around the world, the price of gold peaked at $ 1,700 in March 2020, and then at the time of writing returned to about $ 1,650. It is uncommon for gold to moderately dance up and down in the short term, however the long-term trend has always been upward.
I’ve often told customers that insurance is what you get, but hopefully you’ll never need it. Well, gold is always good to have, because in times of crisis people who have gold can liquidate part of their gold assets to get their hands on some money. And this is the reason why gold is an insurance not only during a crisis but also over time.
Let me explain what I mean by an inflation-based example. Using an American inflation calculator, I determined that what would have cost $ 288.50 in 2000 is now worth $ 433.38, bringing inflation to 50.2%. This means that your money has lost more than fifty percent of its purchasing power because now you need MORE than your dollars to buy the same thing! Conversely, at the beginning of the same year on January 3, 2000, an ounce of gold was valued at the same $ 288.50, but on the first trading day of this year (January 6, 2020) the same ounce of gold was valued at $ 1,558.00. !! * If you knew the power of this yellow metal and just “parked” $ 288.50 per ounce of gold over this 20-year period, the value of your asset would increase by 440.03%! Inflation is a slow and gradual increase over time, so a lot of people don’t realize losses, but now that you KNOW the numbers, you don’t need to be a mathematician to conclude that growth of 440.03% is better than a loss of 50, 2%.
So, if you had to choose savings, which would you prefer: cash or gold? The point is this: if you save gold, you are protecting your future purchasing power in the future, but if you are saving cash, your purchasing power is constantly leaking and waging a losing battle against inflation.
If you still haven’t saved gold, be sure it’s not too late to start and still not lost. The good news is that you now know. And you may have heard the saying that KNOWLEDGE is POWER. Well, I believe that the application of knowledge is a force, because if you know something but do nothing, what is the use of simple knowledge? If you want to start applying your knowledge, check out my FREE report, “The truth about money – 3 key facts you may not know!” and continue your path to knowledge and application. To get it now, click here!