Have you made some money on Paidwork, worked seasonally, or already have a permanent job, but want to save money for retirement? Are you thinking about buying stocks, bonds, gold, or something else? In this article, we will focus on an unusual investment: gold. Gold is a well known metal, used for ages. Even after hundreds of years since it was dug, it doesn't stop shining. In addition to its luster and beauty, it is also known for its value. Is it worth investing in it? If so, why?
Yes, it is worth investing in gold, and this article will explain in a few points why.
1. Gold is difficult to counterfeit
Everyone knows the story about the Greek King Hiero II of Syracuse, who ordered a crown made of gold for himself, but was concerned about whether it was real. To make sure, he asked the help of a famous mathematician, Archimedes. This article is not on a history blog, so we won't go into details related to this story. The important thing is that already 2200 years ago it was possible to verify that a gold product consists only of this metal.
Although no one melts crowns of gold in a bathtub these days, it is possible to determine with a great deal of certainty whether a gold bar is truly golden.It would be a good idea to buy the metal from a good dealer, purchase a touchstone and do proper research.
Gas market equlibrum - demand and supply of commodit.
2. Gold maintains its value despite the passage of years
Gold is like the ocean. It slowly warms up and slowly cools down, and translating this into market realities, its price changes slowly. Look at the graphs of inflation in the US and the price of gold. Do you see the similarity?
The graphics above will give you a better understanding of the market equilibrium mechanism. The first illustration shows how the market behaves under normal conditions, while in the second we see a new equilibrium, resulting, for example, from a reduction in the availability of natural gas.
A good example is the price of cars. In 1920, a Ford Model T cost the equivalent of 20 ounces of gold. In 2018, a Ford Focus cost about 15 ounces of gold, and a Ford Mondeo cost about 20 ounces of gold. As you can see, prices denominated in gold are falling a little as a result of economic growth, but the differences are not as big as for dollars or euros.
3. A wise investment in gold is very safe
Unlike stocks, bonds, or PayPal account status, gold can be effectively hidden, for example by burying it in the garden. That's why it's important to buy gold in the form of coins and bars, not certificates or ETF units. Jewelry, which has a low value during a crisis, should also be avoided.
You've certainly heard that money loves silence. The same is true of gold. Why brag about it? Do your friends or neighbors need to know that you have it? Just keep this information to yourself.
4. Gold is easy to hide and move
A 1,000-gram gold bar is a little smaller than an iPhone. For something worth $50,000, that's not much, is it? This makes gold easy to hide, it's just dense. Keeping in mind the content of the 3rd point, focus on making a small cache and keep your metal there.
The ease of carrying gold is especially useful if you need to leave a place quickly.
5. Gold is not affected by inflation
The Federal Reserve System is responsible for issuing the Dollar, the European Central.
Bank is responsible for issuing the Euro, and the National Bank of England is responsible for issuing the Pound.
Who issues gold? Earth. Of course, a surge in gold production can happen because a new deposit is discovered, but we will not encounter a situation of a sudden release of hundreds of thousands of tons of gold in a year. This ensures that gold will not lose sharply in price.
In addition, gold is not just a capital investment. It is readily used in many industries, such as the electronics industry, and demand for it continues to grow. This is an additional argument defending the position of this beautiful metal.
If this text has convinced you to buy gold, there is no need to wait! Make money (for example, using Paidwork, which you will learn about here) and buy your first bar or coin!
