Reason # 1 – The global currency is losing its value
The US dollar is already very weak and it will probably continue to fall. However, countries around the world are reluctant to accept the fall in the value of the dollar. As a result, the global currency is losing its value, leading to a significant increase in gold. Gold is traded in US dollars. So whenever the value of the dollar goes down, the price of gold goes up.
The US dollar is the world’s reserve currency, which means it refers to almost everything. But since it is no longer supported by gold it is nothing more than a piece of paper.
Reason # 2 – The demand for gold is increasing
Once the world finally begins to realize and accept what is happening, they will look for alternatives to their paper currency. As a result, the demand for gold will skyrocket. To help meet demand, things like gold ETFs have been created.
Investing in gold is a great way to diversify your portfolio and protect your assets that you have worked on for so many years. While its price can be quite volatile at times, it will maintain its value in the long run. So it will protect you against inflation.
Reason # 3 – Lots of Money Floating Around – AKA Inflation
As I said above, gold will protect you from inflation. Inflation actually determines the price of gold. As inflation rises, so does the price of gold. Inflation was highest in 1946, 1974, 1975, 1979 and 1980. And the average return on stocks measured by the Dow at that time was -12.33% On the other hand, the average return on gold at the same time was 130.4%. The big difference.
Reason # 4 – The financial system in the United States is deteriorating
The federal government is currently in a deep sea of debt from which they do not seem to be able to get out. Because the deficit is so high, the dollar is bound to fall which will surely make gold the best option.
Reason # 5 – The use of gold as money is becoming acceptable
All nations of the world, including Islam and Argentina, are moving towards supporting their currency with gold. Why is gold considered such a great asset because it never loses its intrinsic value like the US dollar.