Gold has a long history of being a valued commodity and asset. In fact, it’s widely considered the most recognized and universally valued precious metal in the world. While there’s something to be said for having actual cash or cash assets, gold has some appealing perks that can make it safer than cash when it comes to your financial security. Below, we take a closer look at cash and gold and the level of safety associated with each investment.
Cash is a physical asset when in the form of paper currency issued by a specific government. Cash can also be digital in nature because you can have access to it without the need to have physical cash in your possession. Cash is safe in that it’s a tangible asset with a clear value at any given time. However, several factors can fairly quickly affect the actual value of cash assets, including:
• Inflation and other economic conditions
• The ability to back up the value of the cash or cash-based assets
• Purchasing power
Cash, when used for investment purposes, is meant to provide a return on the initial investment through interest payments. The caveat is the return is typically on the low side when compared to what’s possible or common with other investments.
With gold, you’re taking physical possession of your investment if we’re talking about traditional bullion. This is gold in solid form (e.g., bars, ingots, and coins). The value of gold is largely based on factors such as:
• Purity level of the actual gold content
• Demand for gold at any given time
• Current market prices, referred to as spot value
Available from precious metals dealers and various online sources, gold is considered safe because its value isn’t largely dependent on economic factors. In fact, it’s common for the value of gold to increase significantly when there’s economic uncertainty. Gold can also be purchased as stocks in companies that mine gold. The first step in incorporating gold into your investment portfolio is to work with a reputable firm, such as First National Bullion and Coin. Scottsdale residents can rely on our unmatched professionalism and expertise when they’re ready to invest in gold and other precious metals.
The Added Safety of Gold
There are some additional benefits that can make gold safer than cash. For one thing, gold will always have some value in physical form, since there are many uses for it. It’s also an investment with a discernable value recognized worldwide. Cash, on the other hand, has a value that varies in locations outside the United States.
Also, unlike cash, it’s possible to enjoy a significant return on your investment with gold. This can happen if you time buying and selling based on spot prices and demand for gold. And because gold holds some value at all times, it can provide added financial security that’s not offered by cash alone.
Finding a Balance that Works for You
With any investments, it’s often said not to put all your eggs in one basket. In other words, it’s generally a good idea to find a balance that fits your needs. With physical gold, there’s also the consideration of where you’ll store it. For this reason, it’s often more practical to split your investments among cash and gold. An investment professional can provide more specific advice unique to your situation.
If you’re balancing your investment portfolio and looking for the best place to purchase Scottsdale gold and bullion, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find the information you need on how gold can figure into your investment planning decisions. Give one of our experienced dealers a call today at 480-546-5089.
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.