Whether you should convert cash to gold largely depends on your current financial needs and the reasons you may have for turning your cash into gold. If you’re on the fence about taking this step, read on to learn more about the process of converting cash to gold and what to consider, brought to you by the experts from First National Bullion and Coin, San Diego’s premier dealer of gold, silver, platinum, and palladium.

Paper Money Has a Lot of Uncertainty Attached to It

With paper currency, there’s no guarantee it will be worth anything in the future. However, gold has long-term value. In fact, gold has the potential to become even more valuable later on due to higher demand and limited supply. This means you could end up with a nice return on your investment. 

There has also been speculation in recent months about the possibility of the U.S. dollar collapsing, which is a big factor to consider when it comes to holding gold versus paper currency. Gold has a long history of stability dating as far back as 5000 BC, when Egyptian pharaohs relied on it as an additional source of wealth.

It’s a Good Balance for a Cash-Heavy Portfolio

According to the Peterson Institute for International Economics, it’s good to avoid having too many uncertain assets in your investment portfolio. If the bulk of your current investments are in cash in one form or another, converting some of that cash to gold can be beneficial. It’s a great way to round out your portfolio so you’re not entirely dependent on cash. Gold also adds stability to your other investments, which can give you added peace of mind. For instance, if your stocks aren’t doing so well, gold can be a much-appreciated asset.

Gold Prices Can’t Be Manipulated by Central Banks

Paper currency can be manipulated in a way that changes its value. This can be done by the government or through central banks. This doesn’t happen with gold. The value of this particular precious metal is primarily based on trading activity involving the major precious metals markets.

Gold & Cash React Differently to Uncertain Situations

Gold can be affected by certain global and national events. However, it’s not the same as what happens with cash. Under such circumstances, cash tends to be negatively impacted—as in a significant loss of value. The opposite happens with gold. During uncertain times, there’s a tendency to turn to precious metals like gold. If you convert some of your cash to gold, you’ll have a safety net if your cash assets suddenly take a dive.

Gold Is an Inflation Safety Net

Inflation can take a significant toll on cash assets due to their loss in value. This has certainly been an issue for many investors in recent years. Gold’s value remains consistent, as mentioned earlier. Therefore, when inflation is driving the value of cash down, gold typically remains stable.

How to Convert Cash to Gold

Your local bank is a good starting point. There are also some precious metals dealers who will do this for you. An investment expert can help you out as well if you have cash assets tied up in other investments that are difficult to convert to gold.

If they’re building their investment portfolios and looking for the best place to purchase precious metals, including silver bars and gold coins, San Diego collectors should reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can be great investments. Give one of our experienced dealers a call today at (858) 304-7580.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.