More and more countries are realizing the importance of gold as the foundation of their financial security. The deteriorating situation in the world, as well as the painful experience of the countries affected because of their imprudence are pushing them towards gold.
The case of Venezuela
This Latin American country has been in a prolonged crisis for many years now: inflation exceeds one million percent, people do not have enough money to buy food or basic necessities, the population is migrating en masse. The Venezuelan government is in a desperate need of additional assets to improve the situation in the country.
To this end, the government opted for gold repatriation, bringing back some of its gold reserves from the Bank of England. The refusal of bankers deprived the country's economy of $1,2 billion.
By storing gold reserves within its own territory, Venezuela could significantly improve its position and lower the rate of inflation. Gold saves the state when the economy is going through rough times: gold once helped India and South Korea to overcome the crisis.
By entrusting the tool of its financial security to the wrong people, Venezuela made a big mistake, becoming a striking anti-example for the rest of the world.
Gold – in your vault only
Typically, central banks store part of their assets (foreign exchange reserves) abroad to generate profit, but the growing geopolitical tension is forcing them to rethink this strategy.
Russia stores gold within its own territory. In addition to that, the country became the leader in terms of purchased gold, having increased its reserves by 274 tons last year.
Turkey exported the entire amount of its gold reserves from the United States in 2017. Relations between the two countries have recently deteriorated, so Turkey decided not to take risks and return the most important tool of financial security. At the moment, the Turkish economy is in crisis, which the government partially neutralizes by selling gold from its national gold reserves.
Germany also repatriated a significant amount of its gold bars from the United States and France in 2017. The Germans were alarmed by the fact that foreign banks could use German-owned gold for open market operations.
The precedent of Venezuela’s gold will convince even more countries to keep gold at hand and regularly stock up the reserves.
The best risk protection asset
History proves that gold helps both individuals and entire states, especially during tough times. Adverse economic and political processes spare no one, so you should take care of your financial security in due time. This is the responsibility of ordinary people, not just state-owned banks, it is important to have an emergency reserve to protect savings.
Gold ideally serves this purpose because:
it is not subject to inflation;
in the long run, its price steadily grows;
gold is in demand everywhere;
gold retains its original properties and does not deteriorate;
it combines high price and compactness: $50000-worth gold fits in the palm of one hand;
it is globally-recognized and in demand all over the world.
On April 29, 2019, the price of an ounce of gold is $1,285.
Everyone can create a personal gold reserve. It is enough to buy a small amount of gold every month and store it in a safe place.
Global InterGold has been working with gold for eight years, making it accessible to everyone and helping people achieve Financial Security using gold.
Use the time-tested tool that was known for centuries to preserve and accumulate your capital!