This little posting is as good as gold…literally.
We live in a world of chaos. A world that hangs in such delicate balance that anything may trigger a worldwide catastrophic event. Take the recent case of North Korea for example. If you’ve paid any attention to the news, you might be aware of the ever-increasing tensions between the dictatorship country vs the free world. The words “nuclear capacity”, “missiles”, “sanctions”, and the like have been thrown around on the world stage which could, if tensions continue, lead to war. Millions of innocent human lives could end as a result.
In a world so fragile, so delicate, so politically intertwined, what does it mean for the world markets?
We’ve seen similar situations before, and if we are students of history, we will learn that markets will most likely react negatively as investors cash out due to a loss in confidence in the world economy as war is waged.
So how do we protect our portfolios from such chaos and uncertainty?
One proven way throughout human history is to buy GOLD. That’s right. GOLD.
Because unlike currency, gold is limited in supply. Unlike currency, the government cannot ‘print’ gold. There is a finite amount of gold on this planet and every year only tiny amounts are unearthed by gold mining companies. The price goes up in relation to currencies around the world because currency (paper money) is easily printable by the government and the supply of gold cannot be stretched. The high demand of gold vs its limited supply is what makes gold prices spike in times of uncertainty.
And the case with North Korea is only one recent example of global political tensions… There have been many more events that have caused gold prices to react:
Gold starts to shine (no pun intended) in times of economic uncertainty particularly when the threat of war, economic depression, oil crises, looms over us as investors scramble to look for a safe haven to put their money.
Gold is proven throughout its thousands of years of history to handle inflation, protect against earthly disasters, and the unforeseen global events. So it’s as important as ever to have a piece of it in your portfolio no matter which era you’re in, where you live, what age, background, or situation, in this ever-increasingly chaotic world.
How do we invest in gold?
You can invest in gold by buying:
- Gold-backed securities like Exchange Traded Funds (ETFs)
- Non-gold backed securities such as gold index funds on stock exchanges
- Gold mining companies on stock exchanges
- Physical gold, the real thing!
- Other forms of gold investments like gold certificates, gold accounts or gold trusts
There’s pros and cons to all the options listed above, so do your homework! No matter you like to play it, you’ll be exposed to one of the most resilient, time-tested assets the world has ever known to protect yourself against inflation, global uncertainty, and panic.