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Why Own Gold?
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Why own Gold?

There are numerous reasons for you to own gold. It provides some protection against depression and inflation. It can be seen as insurance in scary economic times. Gold is a commodity valued on a global level. It is usually in demand and has consistently held its value throughout history. A big part of the reason for this is that there is a limited supply of gold. While governments can print as much money as they need, if there is nothing backing this currency, the money loses value with every influx. Gold, on the other hand, requires a great deal of manpower to obtain. We can’t make gold; it must be mined from the earth so there is a consistent issue of supply and demand. That enables it to hold its value well as the supply remains limited.

It has been shown time and again that when inflation is on the rise, so is the price of gold. Gold is an asset that often increases in value to counter the rising prices and can help you survive inflation difficulties if the dollar is reduced to just a piece of paper. This is not to say the price of gold never falters, but gold is much likelier than most commodities to keep its value long term in relation to the cost of living.

Gold would also be wise to own should we encounter another depression. The currency in the U.S. is no longer backed by gold, so if a depression occurs gold may keep its value. Gold coins, jewelry and other gold trinkets helped our ancestors survive depression. Having gold on hand can help you to ensure that your family has assets that will hold their value even if the economy goes south.

Owning gold acts as a form of insurance in these convoluted times. It is hard to predict what the future holds economically, but history has shown that gold consistently holds value to humans. Gold has been used as currency throughout history. Should record inflation or a depression arise, those with gold will have something consistently valued on hand to trade upon.

Besides its role as a currency, gold is used primarily for jewelry so the desire for it should continue to be strong. Its global value is also likely secure. China and India in particular have a high demand for gold. Both countries are in the process of enacting laws that will increase the gold trade a great deal on a global level.

So why own gold? There are a myriad of reasons. It may help protect you and your loved ones against rising inflation. It can pull you through tough economic times should another depression occur. It can act as insurance that you will have on hand a globally valued commodity that has held its value consistently throughout history. Owning gold may be one of the wisest ways a person can spend his or her money.


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Hi Chris, you've pretty much summed it all up here. I really like your website too.

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  about 8 years ago
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