Human history states that gold has emerged on a constant basis as the unparalleled method of investment, saving, and preservation. It is because of the unique features and characteristics, that the inherent value of this metal cannot be debased. When you hold and buy gold coin online, there is no default or counterparty risk. You will also be able to store gold as a form of wealth anonymously.
From the ability to retain the buying power over time to its status of safe haven in periods of turmoil, there are various reasons to own physical gold as a form of investment. Take a look at the reasons why you need to buy gold coin online.
- Tangible Inherent Value
You might already be aware of the fact that physical gold is tangible and real. Moreover, it is indestructible and you will not be able to create it artificially. It is pretty costly and arduous to mine physical gold. Thus, it has an inherent worth and value. However, in comparison to this paper money doesn’t have any inherent value.
- No Risk of Counterparty
Physical gold doesn’t have any counterparty risk. When you get gold bars or gold coins, there isn’t any counterparty. Nonetheless, gold certificates, gold futures, or gold-backed ETFs have counter-party risk.
Gold deposit is known to be quite scare throughout the world. As a matter of fact, it is difficult to extract and mine. Hence, new supply physical gold might be limited. This shows why buy gold coin online is important. The scarcity of gold reinforces the inherent value.
- Store of Value
Gold is important value of store. Physical gold in the form of gold coins or gold bars has the purchasing power for a long period of time. This is irrespective of the increase in the cost of goods and service. In comparison to this, flat currencies like dollar are not stores of value. Hence, the purchasing might be eroded with inflation. As a matter of fact, flat currencies might turn out to be worthless or go out of circulation and become totally debased.
- Long-Term Inflation Hedge
If you buy gold coin online, it will have the ability to retain the purchasing power for longer period. This is known as “Golden Constant”. This makes sure that the purchasing power of gold is same for a long period of time. The ‘constant’ is there because the price of the gold adjusts to the various changes of inflation and also the expectations of future inflation. Hence, physical gold can be seen to have a long-term hedge against inflation.
- Safe Haven
When you physical gold, it serves as the safe haven asset when there is any conflic. At times of financial market stress or uncertainties caused by the war, the risk of the financial asset might increase. However, physical gold doesn’t have any counterparty risk. The investors generally rush to gold for preserving their wealth. This is quite analogous to securing a safe harbor. Hence, gold can be taken to be a form of financial investment against any catastrophe.
If you buy gold coin online, you should know portable. During the times of conflict and war, physical gold are just perfect for the purpose of transporting wealth and also saving it across the borders in the conflict zones.