How To Invest In Gold Now – Buying And Selling Gold, Coins, Bars, Shares, Mining, ETFs

If you are an investor and you’ve never considered gold as a real investment, you really should consider gold as one of the best possible hedging investments you could make. That basically means that gold can protect your portfolio if things turn really bad. If the value of the dollar drops dramatically or inflation comes racing back, gold will in all likelihood go up. What’s more, if the US were to experience a serious monetary crisis, gold could explode in value much more quickly than people realize. That kind of protection can work wonders on the safety of your portfolio, and therefore your ability to not worry about your future.

So how does hedging work exactly? Before we get to that, I first want to cover some basics. Gold has been used as a store of value and wealth for hundreds, even thousands, of years. Societies of all kinds have used currencies linked to gold in order to maintain and protect their wealth. But these days, we have pretty much abandoned this “hard” money system. The primary currencies today, such as the pound, euro, yen, and dollar, are all what are often referred to as fiat currencies. Basically, this means that the currencies themselves are simply paper and that they have no inherent worth. Instead, a fiat currency only has value because a government says it has value. This is what we mean when we say “fiat.” Modern fiat currencies are no longer backed by gold. In reality, they’re just paper.

Why should you care about this? It’s important because, since the currencies of the modern world are no longer linked to gold, their values can be manipulated by governments and central banks. Specifically, the central banks of the world can inflate their money supplies, which basically means that they are simply creating more money out of thin air. Inflation simply means that the currency loses its value over time. This is why prices on most things, including food and housing, continue to go up virtually every year. In fact, since the US dollar was taken off the gold standard, the Federal Reserve has inflated the money supply to the point where a dollar today is worth 96% less than it was when the dollar was linked to gold. Obviously, this is a real loss in value, and this trend will only continue as inflation again increases.

This is the truly important part: in order to stop the tremendous losses caused by the financial crisis of 2007 and 2008, the Fed has adopted some drastic, unprecedented measures. These actions include a sharp increase in the money supply. This means that the dollars you hold could lose even more of their value if inflation picks up. And some experts believe that the actions of the Federal Reserve have made it so the dollar could potentially collapse in the near to intermediate future. This would put the US economy in serious jeopardy, as well as your investment portfolio, which, of course, is denominated in the same dollars that have just collapsed in value.

After considering this worst-case scenario, let’s turn our attention back to gold and its benefits. You can protect your portfolio from a serious monetary crisis by adding gold to it. That is what the term hedging refers to. Even if a crisis happens and part of your portfolio drops significantly in value, the hedged part of the portfolio can make up for it by increasing in value. In the case of a dollar collapse or significant inflation in the US, gold is poised to shoot higher and retain its value. When it comes down to it, gold can offer you protection that no other asset class can.

With all of the uncertainty surrounding the global economy, now is the time to consider all of the great reasons to invest in gold. Gold can protect you from inflation and another financial crisis. You really should consider an investment in gold.. This article, Gold is the ultimate investment is available for free reprint.