July 20, 2024

xacobeogalicia

Passion For Fashion

Buy Bullion and get the financial security you need

3 min read
Five Things You Need To Know Before Buying Gold

Gold isn’t just a precious metals, it is money however unlike most fiat currency gold cannot be manipulated by the government. This is why so many people trust this precious metal. In the current economic climate, gold can be a safe haven protecting you from the ravages of inflation.  

What exactly is money? 

Fiat money is issued by governments. The word “fiat” means an arbitrary decree. It means currency that is government sanctioned. Essentially, it has not inherent value except for the government declaring deciding it is legal tender that can be used to meet financial obligations and debts. The government has a monopoly on fiat currency and it can use it to its own advantage.  The state issues the money. This is called fiat money – money with no inherent value other than the fact the state declares it legal for all debts and financial obligations. The state then enforces a monopoly on the issue of this fiat money – ensuring it can manipulate it to its advantage. 

How to break this monopoly?

There have been a lot of suggestions about breaking the monopoly that governments have on currencies. In all the discussions one thing has always come up, one way of getting to a free market system people needed to have something that has real value and gold has always held its value. It is has intrinsic value that government currencies do not have. Governments can hold gold but they cannot influence its value. Gold has historically been a trusted medium of trading.  Gold is not created by the government. Gold is not inflated by the government. Individuals can buy bullion and hold on to it until they feel they needed to use it.

Gold is valued against the US Dollar and because of this, its value fluctuates throughout the day. Over the last decade, the gold price fluctuated a lot and the value of this precious metal has been increasing in comparison to paper currencies. Gold has earned its reputation of being the best investment to have when the financial world is unstable. Even if the value of a currency plummeted to zero, gold would still be valuable. 

A number of financially savvy experts have made a strong case for gold. They all advocate buying gold to protect yourself from some economic meltdown in the future. There might be a lot of arguments about the economy and where it is headed but there is one common thread, or one point that everyone agrees on- fiat money is unreliable and might be going down while gold is certain to go up. If you are thinking of investing now would be the best time to buy bullion.

The bottom line

When it comes to money, you really don’t have control. The most important benefit of gold is that it provides freedom.  Gold is out of government control. The state cannot inflate the supply of gold and it cannot determine what the value of gold is. Unlike with fiat currency, gold cannot be manufactured at will. These are reasons why gold is regarded as a tool for creating a truelly free economic market. There might be other innovative ways to achieve some financial freedom but right now gold is potentially the best way to avoid the ravages of inflated currencies. 

Leave a Reply