The issue of capital preservation is of fundamental importance. Amid exchange rate fluctuations, constant inflation and impending crises, this particular issue is of serious concern. Protecting your savings from imbalance or depreciation – that’s a challenge for every one of us.
How to protect your savings in the most effective way?
From time immemorial, gold reserves have been serving as the most reliable way to protect capital. In times of unrest, gold saved entire nations. In the 1990s, gold saved India and South Korea – collapses were averted.
Given its physical properties, gold became an ideal tool for capital preservation. Gold stood the test of time and established credibility based upon the experience of previous generations.
Why gold and not currency?
Being largely dependent on political and economic factors, currency is issued and controlled by state administrations and central banks. National currencies are no longer supported by anything except the promises of state officials and bankers. In turn, gold does not depend on authorities, and its price increases over time. Gold bars are fixed assets that are a lot more durable than fragile banknotes.
"Paper money eventually returns to its intrinsic value – zero."
Why not let a bank take care of my money?
Even the most reputable bank does not guarantee 100% safety of your savings. Cash on deposit accounts is also subject to inflation and exchange rate fluctuations. In the event of bankruptcy or liquidation of the bank, getting the invested money back can be a problem. Your bank account is nothing more than virtual wealth, while gold is a tangible property that you personally manage.
How does gold preserve my capital?
By purchasing investment gold bars, you immortalize your savings. Your personal gold reserve becomes a guarantee that the invested money won’t be lost. Gold does not depreciate, and it can always generate a substantial profit.
Additional facts in favor of gold:
when the purchasing power of currency falls, gold rises in price;
natural reserves of gold are limited, meaning that gold will always be in demand;
relatively small gold bars are backed up by great value.
Preserving and accumulating capital
is the natural desire of any individual.
Gold can help you in this endeavor. Do you want to know how? The answer is in the next article.