The recent popularity of cryptocurrency and its volatility has prompted some financial experts to make comparisons to gold that don’t exactly hold water. Cryptocurrency has inherent risks and an uncertain future to some extent. However, this isn’t the case with gold, a precious metal that’s been a part of the human experience for thousands of years. The precious metals experts from First National Bullion, the best place to buy gold in Carlsbad, explain why gold is a commodity that doesn’t ever become worthless.
Gold Has an Established History
The future of cryptocurrency isn’t foreseeable with any degree of certainty. The main reason is because it doesn’t have a long history associated with it. Gold, on the other hand, has been a valuable commodity since at least the time of the ancient Mesopotamians in 2600 BC. In other words, gold has a well-established history that makes it a more secure investment on any level.
Gold Has Many Uses
Gold is more than just a commonly traded commodity or something bought and sold as bars, ingots, or coins. It’s also a precious metal that always has value beyond its investment potential because of the many uses for it. For example, gold is used:
• In jewelry making
• As a coloring agent in some manufacturing processes
• As a material that minimizes corrosion in electrical devices
• As a coating for video and USB cables
• In chemistry, nuclear medicine, and medical research
• In satellite manufacturing because it reflects electromagnetic radiation
This is just the tip of the iceberg when it comes to the many ways gold is used. For this reason, there’s always going to be someone somewhere with a need for gold, even if it’s in smaller quantities or in combination with other materials.
Gold Has a Fairly Consistent Value
As with any other investment that involves trading, buying, and selling, gold rates can fluctuate, but a primary benefit of gold is its value isn’t significantly affected by economic conditions. In fact, during times of economic uncertainty, gold is often a go-to investment because of its fairly consistent value. During the early days of the pandemic, gold actually experienced historic price spikes as investors sought a more reliable commodity.
Scarcity Adds Value to Gold
According to some estimates, most of the known gold in the world was mined during the last half of the 20th century. While there are still some new mines opening today, it’s rare for this to happen. This increased scarcity of new gold supplies means its value is likely to rise for the foreseeable future. On a related note, because gold often remains in circulation, it will likely remain accessible even if new deposits aren’t found as often as what was once common.
Gold Is a Smart Long-Term Investment
As a long-term investment, gold makes a lot of sense. Part of the reason is because gold is instantly recognized worldwide for its value. Plus, as mentioned above, gold tends to hold a steady value, even though it experiences occasional price fluctuations. It’s also a commodity that, in its physical form, can be easily sold, traded, and stored.
If you decide to purchase gold or other precious metals, make sure to work with knowledgeable, trustworthy professionals. Whether they’re looking to buy gold bars, platinum coins, or silver bullion, Carlsbad residents can trust the reputable dealers at First National Bullion. We’re a boutique precious metals firm with highly qualified experts. If you’re looking to add precious metals to your collection, call us today at 760-253-8072.
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.