5,000 Years of Money
Gold has been money for over 5,000 years. There’s a reason our language has sayings like: “It’s the gold standard.” “He who holds the gold makes the rules.” It’s because humans have universally agreed for many centuries that gold is a store of value.
People Kill for Gold
Vikings left their homes to get gold by trade, theft, or murder. Conquistadors explored and conquered a new world to get some of it. Miners left their homes in the Eastern United States to travel to strange new lands out West like California, and the Black Hills to mine for it. Later Alaska experienced a gold rush, one that is still going on in some respects today. Long before any government bureaucrat waved his perfumed hand to declare paper with special ink money, the human species spontaneously and freely chose gold as the premiere store of value.
Better Than Fiat
Gold doesn’t depreciate like fiat currency does. Gold is the perfect refuge from inflation. Gold is not really an investment, gold will not grow for you over time, but gold will hold value over the long term. Some say that the price of gold never changes. The price of everything else changes in relation to gold.
Buying gold is easy. You can buy it in the form of jewelry, coins, and bars. You can buy gold in the form of an Exchange Traded Fund (ETF) and you can even transfer your IRA over to a gold custodian. There are services which will keep gold in special vaults in different locations of the world so if one area experiences a massive disaster, most of your gold will be safe somewhere unaffected by that disaster.
Gold is a Chaos Hedge, and You Want it In Your Possession
I see gold as the ultimate chaos hedge. Fiat currency like the Petrodollar is inflationary and slowly dying every day. Bitcoin and other cryptocurrencies can be great, but if there is a real massive catastrophe and the worldwide computer systems go down, what good is a digital currency? Only physical hold in your hand gold will help you in a zombie apocalypse.
Other precious metals, especially silver are also very important. In a doomsday scenario silver will probably be better for day to day transactions, but for major purchases and to keep a lot of value stored in a small place, gold is better.
Rich Dad Poor Dad Recommends Gold
A great book on gold is Michael Maloney’s Rich Dad Poor Dad series book titled “Guide To Investing In Gold and Silver.” (An Amazon affiliate link is at the bottom of this page). This book is getting a little dated, but it has excellent advice on how to get into gold and silver. One of their tips is to stay away from bars (to avoid assay fees) and stay away from collectible coins (you’re buying as a chaos hedge, collecting value will decrease when the world ends). The book advises you to buy minted gold bullion coins to get the lowest purchase price with minimal transaction fees on the buying and selling end of things.
Mr. Malony also has a great website with lots of articles and news about gold and other precious metals. He also offers to sell gold and silver bullion coins right on his website. I’ve never bought precious metals over the internet before. I prefer purchasing from my local coin shop to help support my neighbors. However there are several reputable places to buy precious metals online including Mr. Maloney’s service, and my personal favorite because of their libertarian and bitcoin friendly stance, Amagi Metals.
In conclusion, buy gold. However don’t expect gold to increase your wealth like investing in stock, some real estate, or buying a cryptocurrency might. Gold is a chaos hedge. Gold is a way for you to preserve some wealth and comfort if the worst happens.