1. Gold is liquid and portable. The bullion markets are traded continuously across the world. Based on a live market price, there is no subjectivity and it can be sold at anytime, unlike other physical assets such as real estate.
3. It can be stronger than paper currency. Central Banks around the world are increasingly using gold products to boost confidence in other more volatile currencies that are at risk for competitive devaluations. Throughout history, precious metals such as gold and silver have been less affected by occurrences in the stock market and other financial markets. In times of crises, gold has continuously increased in value, oftentimes significantly.
4. Gold products are not dependent on governments. Unlike most other currencies, gold is not created by any government, and therefore, its value is not dependent on any. Paper currencies from the dollars and euro to the pound, rupee, peso and yen are issued by their respective government and are backed only by its decree. Since governments tend to issue too much paper currency, their worth becomes less and less over time.
5. Central Banks and governments are increasingly buying gold. Less selling and more buying is going on, perhaps due to market demand or political pressure to return to a monetary system backed by precious metals.
To learn more about how to buy precious metals, click here.