You’ll Never Believe Why Gold is Better than Cash

Gold has been used as a currency in one form or another in times of both prosperity and economic collapse. But gold gets the most action with rough economic tides, here’s why.

They say that rough seas make for skilled sailors, and with the way the financial world has been heaving one way or another for the last 10 year – I will take my financial advisor’s advice when he suggests I invest in gold.

In simple terms, inflation is a real pain in the rear. $5 on Monday may not have the same purchasing power by the time Friday rolls around. Whereas with gold, when times are skint, gold’s value climbs.

So the real value in gold is to buy it when there is little demand for it, and keep it aside for days when the world’s financial system is failing in one form or another. The faces and flags on currencies change over time, but gold will always be gold.

However, that isn’t to say that gold is only to be bought and spent on a schedule of disaster. In many cultures gold is used as a way of saving for an actual “rainy day” scenario, like a family trip or new appliance. Gold jewellery is sold in some countries for a mere 4% – 10% markup of the current gold price, and it is easily exchanged into local currency.

For those in the know, the same could be said for making use of trusted pawn shops in Melbourne to buy and sell gold at the right time, whenever you need it.

Gold is the ultimate savings account in times of uncertainty.

While savings accounts and treasury bonds are long term investments with interest rates that gold does not have, they are also susceptible to severe market fluctuations. If the currency value of the issuing country drops, so does the interest rate.

And then there is the “what if everyone pulled out all of the money out of their bank account at the same time” scenario. Tangible gold is the perfect insurance for a situation like that.

In a nutshell, gold is part of a balanced backup plan or emergency fund. You should always keep aside 3 month’s salary as a minimum, and then grow from there.

Whether you’re wearing it or storing it under your pillow, gold has a bartering value that retains its value quite well.

What do you think? Has buying gold ever been an asset you considered buying? Let us know in the comments!