Gold Has Real Monetary Value

Gold Has Real Monetary Value

Remember that investing in gold is not like buying stocks. Corporations go bankrupt, and stock prices can fall to zero for whatever reasons owing to internal or external forces.

Gold never becomes worthless.
When paper money was backed by gold, the U.S. Dollar had a stable, dependable backing. Sadly through, throughout history every paper currency not backed by gold has become worthless, given enough time.

Gold always has an underlying physical and monetary value. Best of all, gold prices usually move opposite to stock prices over the long haul.

During periods of financial, economic and social turmoil, gold is a safe refuge. It is among the rare handful of financial assets that is not matched by a liability. It is not affected by the economic policies of individual countries and it is independent of the promise to pay clause.

This negative correlation of stocks to gold has historically meant that gold prices go up in the years when the stock markets go down.

-jay-