I have always been confused by the virtual power of paper currency. It is a just a piece of paper. Isn’t it? How can it really have any value? Does it have any tangible benefits? Well, we have moulded the world in a way that currency has huge advantages. But how does it really extract that much amount of power? What does it really have to back up with so much strength? The answer to this question is sheer assets. Now what are these assets? Something that has real tangible value associated with it. Back in the olden days of barter trading system, every object had a value associated with it and it was traded by comparative valuation against each other item.
Gold is something that has real value. It truly defines the asset class. In fact, it is the hallmark of an asset. Money derives its real power from gold to a major extent. It is really a rare metal and that’s why it’s so very precious. You can’t make gold on your own. You need a real natural resource to provide gold. Extraction is not easy and it needs great skills, technique and a lot of complicated procedures. That’s the reason it carries so much importance.
Natural resources like gold are completely on nature. So what will happen if one day these natural resources dive towards extinction? You will no longer be able to provide value to your money in the form of gold. This would mean that gold would become priceless. It might not be in the near future but probably in a few centuries gold will follow this path. No supply but a lot of demand will help it scale improbable heights. Your paper currency won’t be able to bear the strength of gold. One day or the other this is going to happen.
So, the next time your wife asks you to buy gold don’t just ignore her. It might happen that you won’t be able to own gold 20 years down the line because it will reach unbelievable heights.
Get gold now and reap the benefits later.
http://expertscolumn.com/users/samprad78
All copyrights reserved by Sameer Devalekar
No comments:
Post a Comment