Gold as an asset
Gold is respected throughout the world for its value and rich history, which has been interwoven into cultures for thousands of years. Coins containing gold appeared around 800 B.C., and the first pure gold coins were struck during the reign of King Croesus of Lydia about 300 years later.
Throughout the centuries, people have continued to hold gold for various reasons. Societies, and now economies, have placed value on gold, thus perpetuating its worth. It is the metal people fall back on when other forms of currency don't work, which means it always has some value as insurance against tough times.
For centuries, gold has been the greatest symbol of wealth and power. Precious metals such as gold possess a very special magic, which is created by the combination of its value and their glossy appearance.
But there is much more behind gold than just the pure symbolic and mystic character. Precious metals are considered a constantly strong substitute for fiat currencies. This is why gold has always increased in value over the last centuries and decades. The world currencies, such as the Euro or the USD, however, show significant weakness.
More and more buyers therefore prefer the profitable safe haven in form of gold. In the very likely event that fiat currencies continue to decrease in value, it is hardly possible for buyers to generate returns that exceed the inflation rate. This devalues the capital that has been painstakingly saved year after year. Gold, on the other hand, is considered a stable currency because, unlike fiat money, as the amount of gold is limited and it cannot be created our of thin air. While fiat currencies historically always failed, gold has been stable and has increased in value over the last centuries. Gold is the only currency that has been there for years and still exists.Get Access