Stock markets, life insurance, real estate… there are many ways to invest. But today, we are going to talk about one type of investment, gold. You may ask, why invest in gold? This is what we will discuss in this article.
First of all, there is one point that we need to explain: since we use paper-based currencies as an index, the vast majority of investments depend on them. Therefore, if paper money loses value, so will the investments.
Nowadays, countries are constantly devaluing their currencies for various reasons: increasing their exports, financing public deficits, weakening the debt burden…
The price of gold, on the other hand, fluctuates mainly according to world supply and demand and therefore the devaluation of currencies doesn’t affect it. Its value continues to rise while national currencies tend to devalue.
Gold is a safe investment
Gold has an intrinsic value that makes it a safe investment, particularly valuable in the current economic context where no commodity can be safe from collapsing. Investing in gold helps to secure your assets in the event of an economic crisis.
Besides, the average lifespan of a paper currency is 27 years, while gold has survived centuries without ever becoming obsolete. It’s also a universal method of payment, it has no limits, everyone wants gold. It’s an essential resource in a situation of hyperinflation.
Gold has other advantages: first of all it’s an asset that you can keep at home, unlike a bankbook or shares that are held by third parties and influenced by external events.
It also exists in different shapes or different weights, thus facilitating access to investment for all socio-professional categories.
Furthermore, gold has a tax advantage unlike other types of investments. Indeed, the purchase of coins minted after 1800 and gold bullion isn’t subject to the application of VAT. Besides, after 22 years of ownership, the sale of gold is totally exempted from any tax.
At last, the transmission of gold through inheritances is easy due to the liquidity and low volume of precious metals.
To conclude, gold is a stable, risk-free investment that provides security in the event of an economic and monetary crisis.
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