Why Gold Is a Better Investment Than Paper Currency?

Gold is always a better investment than paper currency as its value always increases in the long-term despite fluctuations in the short-term. The banks often tell us that the money kept in the bank grows with the amount of interest earned, but this is not true as the interest we earn from the bank fall far behind compared with rapidly rising prices due to inflation, so holding cash or keeping it in the banks can actually cost us money.

Gold, Silver or Platinum holds the greatest value as an investment because it acts as a reliable store of value for the future, while traditional money can loose their worth as governments keep printing money to cover their financial deficit, so there is uncertainty holding money as store of value.

Gold, Silver and Platinum has always increased in value especially in times of inflation when the paper currency lose its value for example back in the 1950 an ounce of gold cost around $400, whereas the price of gold today is somewhere around $2000. While the value of cash keeps declining, the price of precious metal is on the rise.

The money in kept in banks does not grow in value and keeping cash in the bank is like burning a hole in your pocket. The precious metal, gold silver and platinum will always rise in value, the price of gold is expected to reach somewhere around $10,000 by 2032 and the value of your gold holdings will be 5 times. When cash keeps going down, the gold is often stable and considered as smart investment with potential appreciation over time.

The world economy is hitting in the worst economic headwinds since world war II, the factors or events taking place globally is slowing down growth or causing negative effects on profits and revenue. To maintain reserve requirements, the federal reserve target interest rates and banks lend to one another over a day. The institutions approach of raising interest rates will “crash” equities, bonds, real estate and the U.S. dollar will cause trillion of dollar in the derivatives market.

The governments have a technology called a printing press that allows it to produce as many currency notes as it wishes at no extra cost, the history has shown us that whenever a country tried to run its economy using the artificial FIAT currency system, the end result is always the same disaster. The dollar used to be backed by gold until August 15, 1971, when president Nixon announced that the dollar would no longer be backed by the gold reserves of a nation.

Gold is the only competitor to a national currency. Gold is money and currencies are money substitute that circulate in place of gold. It is gold that protects the people from the reckless policies of the governments. In any catastrophic event as seen in the history of the world, it is not the fiat currency that can protect you.

Tt is gold that provides you the financial insurance. The safe heaven asset for the last 5,000 years is gold, it is the oldest and most reliable payment method in the history of the world. Gold is money and its no longer a secret and it is what makes gold a better investment than paper currency.

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