Three Compelling Reasons to Build Wealth with Gold

My grandfather was a wise man, especially when it came to handling money, even though he worked a blue-collar job. Thanks to his skills, our family never faced a financial problem he couldn’t fix. He taught me a memorable lesson about money: every dollar you have is like a seed. You can either spend it now or plant it for future financial growth.

He believed that saving money is just the first step of planting this seed and that savvy investing is the final step. Many people hesitate to invest because of the so-called ‘risk,’ choosing to just save money in a bank account. However, I think there’s a better option: saving by buying gold.

So, why choose gold instead of a savings account? Here are three reasons:

1. Gold Keeps Its Value

Regular savings accounts deal in money issued by governments, which means their value can change based on the economy’s health. These types of currencies, like the dollar, don’t have anything concrete backing them, so their value can go up and down, and they might even become worthless in certain political or economic situations.

Gold, on the other hand, has been valued as a currency all around the world for a long time. Its value is recognized everywhere, making it a reliable asset and a good way to exchange into different currencies.

2. Gold Can’t Become Worthless

Many people don’t realize that keeping cash in savings accounts comes with the risk of losing purchasing power over time because of inflation. For instance, from 1916 to 2016, there was a 316.4% rise in inflation. Meanwhile, gold’s value has increased by 465.3% over the past 40 years.

Although gold prices can move around due to the market, its fundamental value doesn’t change, and it won’t ever hit zero. This is because of the significant time and resources needed for its production and security.

3. Gold is Portable Wealth

Gold stands out for how easy it is to carry, which is great for protecting wealth, especially when the world is unstable. Unlike bank accounts, which can be tracked and possibly frozen by governments, gold is a more private way of holding wealth.

With gold, it’s easy to move your money around. For instance, $200,000 worth of gold can be as small as a VHS tape, unlike cash, which would need a briefcase. Also, there can be legal issues when moving large sums of cash across borders, but gold offers a simpler way to manage and preserve your wealth.

These reasons show why saving money with gold might be smarter than using traditional methods.