Throughout human history, people have been fascinated by gold. It’s distinctive shine and beauty made it the go-to material for religious objects and building direction. Gold has a quality of permanence–in looks, in its technological applications, in but most importantly, in value.
Why Gold is a Safe Investment
Consider this incredible fact: In ancient Greece, a set of well-tailored clothes would cost you roughly an ounce of gold. Today, a nice, tailored suit will cost you a little over $1,300–roughly the value of an ounce of gold (at the time this was written).
Gold holds its value remarkably well, unlike most currencies.This is mostly because there is a relatively fixed amount of gold in the world. This finite supply ensures a nearly constant demand.
Here’s a visualization: if you took all the gold in the world and compressed it into a giant cube, each side would be slightly under 70 feet long.
When the United States dropped the “gold standard” and the Federal Reserve started printing money that wasn’t backed by anything physical value, the dollar became subject to inflation and deflation. This is why the value of gold appears to go up, on the price of the dollar.
To put it simply, you can’t make gold like you can print money.
This makes gold one of the safest, smartest investments you can make. As a matter of fact, Market Watch recently published an article that proclaimed “Buying Gold in 2016 is like Buying Stocks in 1941.”
How to Build Capital on a Small Budget
Hopefully, I’ve already convinced you that gold is a smart investment. However, you might still be wondering, “With prices north of $1,000 an ounce how can I invest in gold?”
It’s an understandable question, but the answer is simple–there are many ways to start investing in gold that won’t break the bank.
- Direct Gold Ownership–Most people who invest in gold like to have the physical product, whether in bars, ingots, or coins. Gold is available in amounts as small as a gram, which, at the time of writing, was valued around $25.
- At prices, this low, almost any one can start investing in gold.
- Other Options–For people who are hesitant to invest in physical gold, there are many other options, including gold mutual funds, gold stocks, as well as gold options and futures. As with any investment, you should do your research to make sure you fully understand what you’re buying before you invest in one of these more abstract options.
Hopefully, you’re convinced that no matter what your finances look like, you can start to save for your future by investing in gold.