Gold is one of the safest investments that exist, no one in 6000 years has ever claimed to have had a substantial loss due to gold. On the contrary, those who have invested in monetary value systems have had to suffer (especially for the past 11 years) of convulsive days due to inflation, defaults and economic crises, up to losing almost or even all their capital.
Already the ancient Egyptians in 6000 BC they used this metal as a symbol of wealth: what made it precious in antiquity was the rarity (initially available only in the nascent state-nuggets), the brightness, the color similar to the sun (one of the first symbols, or perhaps the first, of life and divinity). The sun gives light, allows human life to exist and nature to provide human beings with the resources necessary for survival: light is the victory over darkness, the victory of good over evil. Gold symbolized divinity, sovereignty, to the point that only the wealthier social classes were in possession of gold and could use it to embellish themselves.
When paper money was introduced, the corresponding gold “value” was shown on the banknotes. The central banks of the various nations thus made themselves guarantors, thanks to their gold reserves, of the value of what was and remained a simple piece of paper and nothing more. The enormous convenience of holding this precious asset is found especially during financial crises (2008 docet). One often wonders why, after years and years, gold continues to be considered a precious asset, a safe and stable safe haven, despite the enormous quantity of financial instruments present, including cryptocurrencies.
The real secret of this enormous value given to gold is its difficult availability and its limited quantity; this leads to a high valuation of gold, very difficult to write off, even in the presence of catastrophic financial events, as the extraction of metal is a complex and extremely expensive process. The gold metal is so important that it is used in the form of gold reserves by the governments of the whole world (including USA, first in the world for the amount of gold held in its vaults) and by the largest business banks. Monetary policy is on the brink of collapse: the world is increasingly indebted, just think that only the United States holds a public debt of $21.97 trillion. Leaving your money in this circle of fire means risking. Gold is the only solution: its rising price is indicating that it is an investment solution that is always much sought after, because it is not directly influenced by the economic policies of each individual country and cannot be repudiated. As in the case of paper banknotes, as it is not issued by a central bank, but by nature itself.
Further confirmation of the fact that gold will never fail we also receive it thinking of the fact that yellow metal is not only useful in a purely financial sense, but also in many other sectors, such as the medical sector: gold can in fact, it can be used to fight many diseases and new studies are still able to shed light on its multiple properties.
Precisely because of the enormous effort in finding and extracting gold and working it, the depreciation of gold can be considered a chimera. Gold, just like the water on Earth, is unique, cannot be manufactured, its limited quantity represents a safeguard.
Gold has a particular market, which doesn’t depend on traditional financial markets: this is why, in the event that the hectic days of 2008 recur, their assets would not only remain intact, but would increase. In fact, just when financial markets are going badly, the value of gold tends to increase. How is it possible? Let’s take a practical example to understand:
Imagine we find ourselves in front of two very good footballers, a soccer player D and a soccer player G, who each day compete for the title of strongest player in the world. If suddenly the footballer D (who in this example we will associate with the dollar currency) plays a game badly, immediately the title of strongest player in the world will pass to the footballer G (whom we will associate with gold). Here, if the dollar (the football player D) plays a game badly, because of so many reasons, everyone will aim their eyes and trust the other player, the footballer G (the gold), who will inevitably acquire prestige and value, earning on the distrust of the fans against his competitor, the footballer D (ie the dollar).
We’ll ask ourselves what happens to gold when “both play well”, that is when the dollar is temporarily stable: at most the value of gold will drop by a couple of dollars and then rise again within a few days and return to its usual price (in 6000 years gold never went into default), will remain stable or grow equally; the above factors will come into play: its rarity, its external beauty, its long-established history, its physical characteristics useful for the evolution of many sectors such as the modern modern, electronics, aerospace industry.