Gold is the best form of saving since time immemorial. Due to its exceptional features, the value of gold cannot be negated. When you hold physical gold, there is not default risk or counter party risk. You can store gold as wealth anonymously. It has the ability to purchasing power overtime. Here are some of the reasons to buy purchase gold bars that are gold in physical form.
Full of Inherent Value
Physical gold is known to be real and tangible. The best part about it is that it is indestructible. Moreover, you will not be able to create purchase gold bars physically and counterfeit it. Mining the physical gold mines is considered to be a costly affair. This can also prove to be pretty hectic. Hence, physical gold has inherent value. However, paper money on the other hand doesn’t have any inherent value.
Gold deposits are known to be scarce all around the world. As a matter of fact, it is difficult to mine and extract gold for making purchase gold bars. Thus, the new supply of gold is limited. This is the gold has become such a precious metal. The scarcity of gold reinforces its value.
Can’t be Debased
When you purchase gold bars, you will notice that it has physical characteristics which cannot be debased. The supply of gold is known to be immune to the political changes. If you compare it to flat supply of money that are constantly being destroyed and debased due to deficit government spending, you will realize that it is much more valuable and you cannot be debase it. On the scale of survivorship, gold is known to have outlived all other fait currencies by almost thousands of years.
Physical gold will perform the role of safe haven asset during the times of conflict. When there is a financial market stress and increased uncertainties, the counterparty risk of the majority of the financial assets spikes. However, physical gold doesn’t have counterparty risk. Hence, you can use gold for preserving your wealth.
Physical gold such as gold coins and gold bars is a combination of high portability and high value. It is ideal for transporting wealth. Hence, saving across the border becomes pretty easier.
Gold has a universal acceptance. This means that it will be accepted as money around the world. With a liquid gold market, there are several opportunities to sale gold bars and gold coins.
Military personnel are often given gold coins which they carry with in the conflict areas. This is form of emergency money as it is universally accepted.
No Default Risk
Quite unlike government bond, you will not have to experience any default risk with gold bars since it is not issued by any authority who will default it. Gold coins and gold bars are no one’s liability.
Independent of Internet
When you purchase gold bars, you will know that it doesn’t have any access to the internet or electronic wallets. Moreover, people cannot steal money by hacking the electronic address.
Feels like Real Wealth
Physical gold such as gold bars might give you the feeling of real wealth. When you hold have some real gold coins in your hand, you will know that you are feeling real wealth. Gold is pure and might be costly to produce.