Gold Is This Century's Comeback Kid
Never before in human history, have we been in a system like the one we're in now. FIAT currency has never been tried before and no one knows how it works. We do know that it will come to an end. Every single FIAT currency has come to an end, with over 1,000 of them dying a short death. But the USD is the world's reserve currency and it started it all. It's the only one that most of the world trusts and yet, here we are, seeing it fall. The reason for this is complex and when you understand it, you'll know why gold is making a huge comeback. Investing in gold bullion right now is the most prudent decision to make concerning long-term sound wealth protection.
Weakness in the dollar
The dollar has been weakening for the past 80+ years and has lost much of it's value. In fact it's lost 98% of its total value and that has been occurring by an average of 1% every year for almost 100 years. Since it became the world reserve currency, it has seen a change in how it is used. It's not just the currency that international trade wants, but it's also a safe haven for many investors, i.e. stock market and bonds. However, the weakness in the dollar has recently quickened, as QE4 is underway to the tune of $3 trillion. This has meant the large increase in money supply and increased debt has shaken confidence in the true value of holding onto the ‘green gold'.
Natural deflation antidote
Currently, we're in a massive period of deflation. Nobody is buying nearly as much as they used to, prices are going down and the dollar would have gained but since the money supply has shot up, any chance of the dollar strengthening went out of the window. But Gold will protect against your dollar weakening, which allows for any investor to buy more stock while the price is low. The purchasing power of gold has risen and it's not surprising why. As the dollar weakens, gold strengthens and thus, during a deflation, it will make the most gains.
As someone who might be new to investing in gold, you might be wondering what kind of options there are? Stock is very simple, it's a price that is set for you, whatever it happens to be, and you can buy it. But gold is measured per troy ounce in value. Currently, it's around $1,888 but that doesn't mean you have to only buy 1oz bars. You can buy gold bullion online in the form of ½ 1oz coins, 100g bars, and 1kg bars or higher. So you can buy gold to any amount you can afford and split the types of bullion you hold.
Gold is money while the USD is currency. Money will always hold its value for longer and since the supply of currency has increased, gold has continued to remain at all-time highs. It's a safe haven that has been around for 5,000 years.
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