Hailed as recession-proof assets—Silver, Gold and Platinum have increasingly assumed the role of the “last true currencies”.

Ownership of precious metals has a long history of safeguarding wealth during periods of economic downturn. However, it’s over the past decade in particular that gold, silver and platinum have proven their ability to greatly outperform many other asset types. As economies all over the world continue to struggle with an array of troubling issues, this could point to tremendous upside potential of gold, silver and platinum. Market predictions even suggest the price of gold could hit new record highs in the future.

From a threatened U.S. dollar to ongoing geopolitical concerns around the world, there are a number of reasons that many people are deciding to move a portion of their assets into U.S. government-issued gold in particular. Below are some of the major factors to why buy gold:

  • “Physical gold, stored outside the banking system, is the ultimate form of wealth protection both against a deflationary collapse and a hyper-inflationary destruction of paper money. [As such,] holding physical gold is absolutely critical to your financial survival!”

    GoldSwitzerland
  • “When the dollar is burned to a cinder and it’s not worth much, if you don’t have any gold, then what do you have? You’ve lost your wealth.”

    Peter Schiff
    CEO, Euro Pacific Capital
  • “All it takes for gold to rally is an international incident, or an unexpected flare up of inflation or some new financial crisis to start rolling into view. Unlike other commodities that need economic activity to drive them, gold can be driven by politics and one thing that seems to be a growing wave, is instability in global politics.”

    Forbes
    2/24/14
  • “The big, developed world central banks will start buying again. And if they do, it would put real rocket fuel into the price of precious metals.”

    MarketWatch
  • “When you can’t trust the currencies of governments in flux and when it’s not safe to invest in tumultuous emerging markets, gold is a logical place to stash cash.”

    Wall Street Journal Marketwatch
    5/28/14
  • “A wild card that could continue to lift gold is the unfortunate persistence of unrest in many corners of the globe.”

    Wall Street Journal Marketwatch
    5/28/14
  • “Betting against gold is the same as betting on governments. He who bets on governments and government money bets against 6,000 years of recorded human history.”

    Gary North
    Economist
  • “…people are returning to gold as they want to hedge against a global slowdown.”

    Casey Research
    10/15/14

Gold is a store of wealth.

 

Gold has maintained an intrinsic value for thousands of years, making it a unique vehicle for wealth insurance. As the only global currency that has stood the test of time, gold has outlasted every government and paper form of money—making it essentially default proof. As a long-held form of wealth preservation, protect what you’ve earned and saved throughout the years with physical gold.

Gold is a portfolio diversifier.

 

In a post-Great Recession world, alternative asset classes are emerging as a vital component in financial portfolios, mainly in the form of precious metals. Gold is especially regarded for its negative correlation to stocks and bonds. Historically, when stocks go down, gold goes up. This makes it an ideal portfolio diversifier during times of unexpected economic downturns.

Gold is a safe haven.

 

Geopolitical tensions. Social unrest. Terrorist attacks. A current laundry list of issues at home and abroad threaten to send your paper assets into financial paralysis. During volatile times like these, gold tends to surge—even outperform—riskier asset classes. Individuals seeking shelter from the economic storm turn to precious metals, boosting gold’s appeal as the ultimate safe-haven asset.

Gold is a private form of wealth.

 

In an increasingly hyper-digitized world, privacy remains paramount. As a private form of wealth that is both portable and durable, physical gold can be privately accumulated, easily liquidated and traded worldwide. Physical gold is especially easy to convert and virtually untraceable, attracting many gold buyers to safeguard their savings outside of the traditional banking system.

“When people look for a store of value, a currency hedge, a way to protect their wealth, they go to gold.”

—CNBC, July 2016

Gold is a source of profit potential.

 

Wise gold buyers have seen tremendous gains over the years, especially long-term holders of gold. In 2000, gold was just $279/ounce. Fast forward to 2011—during the height of political and economic instability—when gold shot up to its all-time high of $1,923/ounce. That’s almost a 600% increase! If prices have hit those levels once, then who is to say it can’t happen again.

Gold is purchasing power Preservation.

 

The buying power of paper currencies continues to erode in no small part to ballooning national debts. Ours alone is over $19 trillion! But because gold is traded in U.S. dollars, a decline in the value of the dollar typically sees an increase in the price of gold. That’s how gold can protect—even expand—your personal purchasing power in today’s uncertain world.

Gold is generational wealth.

 

Families today are faced with many options when it comes to passing down wealth to secure their children’s financial futures. Unfortunately, each transfer between generations leaves the chance of triggering tax consequences or other financial burdens, diminishing what’s actually left. Gold can maximize your financial legacy—all in a discreet and private process.

Gold is subject to supply and demand.

 

The U.S. dollar is essentially only as valuable as people’s faith that it is valuable. Yet, paper money holds no intrinsic value, which is why more can just be printed. But you can’t print more gold. The yellow metal is naturally limited in supply. With record-setting global demand over the last decade, gold’s finite availability has emerged as another one of the growing reasons that gold is on the move.