What Will the Worth of Gold Be If the Economy Collapses?
What will happen to gold's value if the economy goes into recession?
Is it wise to keep some gold on hand as a hedge against a financial collapse?
Assets kept on paper become a liability in uncertain times. Investors frequently have a low opinion of paper money, especially when it comes to government debt. Intangible assets are the only true safe haven; they have real intrinsic value and aren't just claims on anything of value. Having gold in your possession will serve as a safety net in the event of an economic downturn.
Gold has always been regarded as a highly prized commodity. In 2600 B.C., the Egyptians began utilizing gold as a kind of currency, and by 1500 B.C., it was widely accepted. In addition to being mentioned in the Bible, gold has been employed ceremonially and in symbolic items by a variety of religions.
Worries about inflation, financial crises, and widespread distrust of government have all contributed to Gold's recent resurgence in favor. Gold's price has risen by over $1,000 in the last decade, prompting many investors to shift significant sums of money from other investments into gold.
Many people buy gold as an investment, but others do it to protect themselves financially in the event of a complete economic collapse.
Gold has a high value because of the esteem with which it is held by the public.
It's actually of very limited utility in today's world. There is a lot of discussion regarding whether or not placing so much value on something that isn't all that valuable makes sense in today's culture. Gold is currently used in jewelry (about 50%), investments (about 40%), and industries (about 10%).
How much of a bargain will gold be if the economy goes into meltdown?
There will be many goods far more precious than gold in a post-apocalyptic world. Food, water, shelter, guns, bullets, land, and clothing will be top priorities. Survival-related items will remain valuable even if society as a whole crumbles.
Gold may have a short-term perceived value, and individuals who own it may be able to trade with it. The value of basic necessities like food and water will soar to 1,000 times that of gold if the situation becomes dire.
People will pay (or trade) for gold based on what they are willing to pay for stocks, bonds, and real estate in general. What is the real value of gold if the system fails?
If you do decide to purchase gold, make certain it is real gold rather than paper gold.
Gold exchange-traded vehicles which can be held in an IRA are usually not a good choice unless you have physical gold in your palm. If the system fails, your investment in paper will be worthless, just like all other paper assets. Gold is a great investment, but only if you're investing in genuine, actual bars of the metal.
Possessing a valuable asset creates a slew of issues, not the least of which is security. You might as well prepare for a complete meltdown and follow the advice of pessimistic forecasters if you really want to prepare for it.