It is certainly true that many Australians consider investing in the equities market (in spite of its inherent volatility) and regularly invest in money market funds, mutual funds, and shares and debentures of different companies so as to secure a suitable ‘nest egg’ for the proverbial rainy day. Nevertheless, there are inherent risks involved in trading in the shares market due to the fact that even once blue chip companies have been known to fold over and file for bankruptcy. (Kodak and Polaroid, both of which were the undisputed kings of photographic equipment, were compelled to fold up, and their shareholders had to suffer huge losses)
In fact, if we were to study the history of the ASX (Australian Stock Exchange) the volatility of the equities market is a regular feature of life. The volatility is actually the point of the stock exchange – people earn money by predicting how the values will go up or down. If the stock market was perfectly stable, there would be no point in investing in it, as there would be no chance of ‘beating the market’ and making a fortune. Some of the richest people on earth made their money by buying the right stocks at the right time.
This is where Gold Bullion Australia comes into the picture; investing in gold helps provides a certain level of protection from both inflation as well as a downturn in the economy. The equities market may be either bullish or bearish (as the case may be) but unlike inflation, where long term investment is concerned, gold bullion is a far safer option than liquid cash and other securities. This is mainly due to the fact that paper money and electronic, mechanical or even real estate assets, tend to depreciate with age, while gold bullion has a tendency to retain its value and even increase it, as time passes by.
For many people throughout the ages, up till today, it is seen not just as a ‘preserver’ of wealth but also a way of ensuring that the coming generations remain safe from poverty. Another reason why gold bullion is such a great help in hard times is because it also helps keep the effects of deflation at bay. Here deflation may be defied as ‘a period of time when prices drop drastically’ however, deflationary trends tend to be sudden and erratic, which is why it is difficult to predict the same with any high degree of accuracy. In such trying times, precious metals such as gold and silver tend to retain their original value.
In the light of the above we can say that investing in gold bullion is by far one of the wisest investment decision possible, that would not only be a hedge against any economic turmoil at either the personal or even national level, but such an investment will help secure the future of the coming generations as well.