Why Invest in Physical Gold?


Well known in the form of jewelry, one would almost forget that gold has always played a very important role in our monetary system. Gold has circulated as currency in many countries and has contributed to the prosperity of many civilizations.



Since August 17, 1971, and the announcement of the end of the Bretton Woods agreements (1946-1971) by the American President Richard Nixon, the international reserve currency is no longer convertible into gold. In 2008, when the bubble in the US mortgage sector (Subprimes) exploded, a number of bets placed on the derivatives market threaten to collapse the entire global banking system.

You know the rest, to save the system; central banks have created money (cash drawer) in very large quantities to bailout the banks, trillions of the dollars just by The US Federal Reserve between 2008 and 2014. But this only temporarily postponed the problem, and especially aggravated it. For the simple reason, we do not solve a debt problem with ever more debt.

"Give me the power to create money and I do not care who makes the laws! Mayer Amschel Rothschild.

The story has a message for us!

It is interesting to note that none of the currencies (not convertible into tangible assets) has survived, regardless of the country. In the end, it was always gold that won (the average life of a paper currency is 27 years). The Euro was created in 1999, 17 years ago. The end of the dollar is inevitable. It will not happen tomorrow or next week but China and many other countries are already signaling the need for a reform of the monetary system and a new international reserve currency.

The currency war

"If we had to choose between trusting politicians and trusting gold, we will always choose to trust gold."

Countries are constantly weakening their currency for various reasons, increasing their exports, financing public deficits, weakening the debt burden. It is an economic war or the one who wins is the one with the weakest currency! It is, therefore, unwise to compare a fiduciary currency to another fiduciary currency; on the other hand, it is interesting to compare a fiduciary currency to the real currency, which is gold. The dollar is now the international reserve currency, except it is a currency that has weakened considerably against gold, indeed if we measure the dollar in gold, we find that it lost 80% of its purchasing power compared to gold since 1999. The purchasing power of gold has always remained stable. That happens when a government does not manage its economy well and prints money to solve all problems, and that is just the beginning!

Between 2001 and 2011 the performance of the gold price was 600%, the price of the ounce of gold multiplied by five over this period.

Gold reserves of Central Banks

As mentioned above, physical gold can be considered as a safe haven, but it is above all a currency that the central banks of the whole world keep in reserve and accumulate in order to maintain a feeling of confidence (Central banks are net buyers of gold). The emerging big powers, Russia and China, are increasing their reserves at a pace never seen before.

How to invest in gold?

Once decided to allocate part of your wealth to gold you will have to ask yourself the question of how you want to hold this gold. The safest and oldest way to invest in gold remains physical gold. Just follow the below link and get the multiple ways to invest in Gold:

 Best IRA to Gold Rollover

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