The long term value of gold
Gold has been a highly sought-after precious metal for thousands of years, valued for its beauty, rarity, and durability. Beyond its aesthetic qualities, gold has proven to be a reliable store of value, retaining its purchasing power over time. In contrast, paper currencies and other assets can lose value over the long-term due to inflation or other economic factors. As such, gold has become a popular alternative choice for those seeking a reliable store of value and investment.
One of the primary reasons that gold has retained its value over the long-term is its scarcity. Unlike paper currency, which can be printed in unlimited quantities by central banks, the supply of gold is limited. This scarcity has helped to maintain its value, even during times of economic instability.
Hedge against inflation
Inflation occurs when the prices of goods and services rise over time, reducing the purchasing power of a currency. Gold has historically been able to maintain its purchasing power, even during times of high inflation, making it an attractive investment for those seeking to protect their wealth.
Gold is recognised and valued all over the world, making it a highly liquid asset that can be easily traded or sold. This global recognition also makes it an attractive alternative for those seeking to diversify their portfolio and protect against economic and political uncertainties.
Gold has proven to be a valuable asset during times of economic and political turmoil. It can serve as a safe haven asset during times of uncertainty, as it is not tied to any specific country or currency. As a result, gold can provide a level of security and stability to investors during turbulent times.
While the price of gold may fluctuate in the short-term, its long-term value has remained relatively stable. This makes it an ideal choice for those looking to preserve their wealth over time. As such, it is not surprising that gold has been a popular investment choice for thousands of years, and continues to be so today.
Over the last 20 years gold prices have increased by 674%
If you bought £20,000 of gold 20 years ago the value of your gold now would be worth £155, 770.