It has to be said that gold is one of the most flexible metals out there – it can just be used for so much! If you’ve ever heard the phrase, “the acid test” it refers to the fact that you can dissolve silver and other metals in nitric acid, but not the precious metal gold. During the 13th and 14th centuries people began minting gold as currency. In our modern age gold maintains an important place in manufacturing and industry.
With all our new industrial technology and metal extraction techniques, there are still people around the world who mine gold in a similar way to our ancestors. Anyone nowadays can get access to gold; that is the exciting thing about the internet and how it opens up entire markets that were previously closed to “mom and pop” investors. The generation of new wealth today is largely information based. We have the ability to gather, consume and analyze far more data in a single 24 hour period than all previous generations could assemble in a week.
The use of gold to underwrite paper money was phased out in the mid 1940′s. In times of economic despair, paper money may be worthless if people do not trust the government’s promise to honor the value. This is the kind of time when gold becomes most valuable. With wide scale industrial use still happening and the overall limited capacity for the world to mine gold, it has an intrinsic value that your paper money does not. When countries fall or currencies crumble, the smart investors or governments always build up their stores of gold.
Along with silver, platinum and a range of other rare metals, gold is a special substance. In early times, gold was associated with water, and the ancient Greeks believed it may be a unique (and poetic) combination of water and sunlight. As time went on, and as people began bartering for goods and materials, gold and silver suddenly became useful as money. Ancient cultures used gold and silver as portable and private money – that is, in the form of “coins”. People “recycled” gold through history, and we’re no different today – at any one time today we recycle at least a 3rd of all the gold in the world.
So it’s all very well and good that you make money selling gold when the price goes up. But what happens when you’re caught in a falling market? Exchange-traded gold funds (commonly known as ETFs) are one way to invest in gold and may spread your risk. The funds are sponsored by the World Gold Council and the securities are listed on a number of exchanges worldwide. Savvy investors know that when storm clouds are gathering on the economic landscape, they need to get into more stable positions. These investment opportunities were not always open to small investors but now, being able to buy gold online, you too can defend your portfolio the way the pros do.
Yet another approach for the yellow metal to really help secure and investor’s pension is by means of incorporating it with an Individual Retirement Account. The US Government authorizes including physical gold bullion and some other precious metals into a gold IRA. You can incorporate gold inside a retirement account pretty efficiently using a transfer or rollover. One do not take possession of the bullion as they are secured for you by a custodian. Notwithstanding your conventional financial investment desires, a real asset including gold can serve to help make the profitability and security of your retirement account far more attainable.