The value of a country’s currency decreases over time. Each year as the government keeps printing more currency notes, the valuation of the paper currency keeps going down. So, your precious hard-earned cash in your account will lose much of its value in the upcoming years.
Investing in precious metals is an investment alternative to cash savings. Buying gold bars is a safe way of investment if you are a beginner. This yellow metal provides security and a potentially high-return rate unmatched by any other investment asset. Therefore, you should consider investing your money in gold in such a way. You can easily buy gold bars by visiting https://www.goldstackers.com.au/buy/gold/gold-bars/.
Every year the value of the paper currency goes down by about 5%. That means if the money has been stagnant in your account or earning less interest than the inflation rate for a couple of years, the amount would have lost much of its value by now. This gradual yearly decrease in its value is called inflation.
Investing that amount in precious metals means its potential yearly return rate is much higher than the inflation rate. So not only does it stop the value of your money from decreasing, but it can also provide you with a positive return amount, which compounds to a considerable sum after a few years. So you stop losing your money’s spending power due to inflation, despite even securing your gold in a bank.
Why Invest In Gold Bars?
There are mainly two reasons for a new investor to go for this form of investment. Firstly due to its potentially high-rate returns. Gold prices have sextupled over the last twenty years. It hugely influences the financial world despite dropping the gold standard earlier. Secondly, you know what you have invested your money in. You will get actual bars which you can sell anytime to cash out.
Reliability and Flexibility
Gold is the best starting point for your investment journey. It is not at all complex but rather pretty straightforward. The stock market requires a lot of learning and researching. Without proper guidance, you may end up losing more money during volatile market cycles than you were losing due to inflation.
Gold offers potentially higher return rates than many existing mutual funds in the market. The return rate is approximately 12%. So twelve percent of your invested amount gets compounded yearly, adding to your principle year after year.
You also get the flexibility of cashing out anytime. If you sell a bar in the market, you will get the same amount as its current market price. Gold prices do fluctuate as with any investment. Unlike stock market shares, it’s considered stable and does not incur losses the same way or usually in the same market cycles as stocks do. Especially in high inflationary and rising borrowing interest rate environments, thus possibly acting as an overall counter balance. Gold is considered a hedge investment against inflation.
Real Physical Investment
People know all about gold. They know how valuable it is and are pretty familiar with it. However, the share and debentures is a concept they might never be able to grasp. So, they will likely feel more secure investing in the metal than in a piece of ownership. Thus providing them solace and peace of mind.
Gold bars can be sold at any time in the market. It can also be converted to ornament or used as a family treasure. Shares can be bought digitally nowadays. No physical ownership certificate is provided. So a newbie investor might feel that it is worthless spending money. If so then buying gold bars is the way to go.
Conclusion
Keeping your money locked in a bank account during high inflationary times will only make it lose value. Instead, investing will prevent it from losing value over the long-term by providing returns. Gold bars offer a safer middle ground between highly risky stock market investments and storing the money in a bank account. You can buy the bars and keep them inside bank lockers-safe deposit boxes as an alternative to directly storing money. Thus, you are practically holding your savings in the same safe, a secured place as you were doing before. Only you don’t lose any of its value due to inflation with it. Do your research and see if buying gold bars can fit within your risk tolerance and long-term investment strategy.