3 Reasons You Should Buy Gold Right Now for Long-Term Investing

When a person begins their journey into precious metals investing, they typically do at least some research on the market. During this process, they’ll often find an abundance of Google results declaring that they should buy gold right now. It’s likely how you found this guide.

Of course, this might seem like a problematic reality. After all, how can now always be the right time to invest in gold? Articles posted 10 years ago can’t still be valid today, can they? Fortunately, the answer is yes. Gold is one of the few assets that’s always a smart buy.

At Silver Gold Bull, we recognize this may seem counterintuitive. If you happen to read this when the asset’s price is on the decline, how could buying gold right now be a smart investment strategy? We can answer this question by pointing out three simple factors.

1.  Gold Has Stored Value for Millennia

While people may seem overly excited about buying gold bullion bars and coins right now, this is hardly the only time there’s been high demand for the metal. Most people are well aware that gold has been valued throughout human history. Unfortunately, they may not know why.

While gold certainly looks beautiful in jewelry and coinage, this doesn’t explain the continued high demand. Such demand has caused major problems in the past — with gold hoarding even contributing to the Great Depression. Demand is high because the metal stores value.

Throughout history, paper currency and base metal coinage have gained and lost value. There are countless currencies that no longer exist, and we’ve seen modern fiat money lose its value in times of economic strife.

This doesn’t happen with gold, and that’s why the following remain examples of gold’s lasting appeal:

• Man-made objects containing gold date back at least 6,500 years
• Humans have mined gold for at least 5,000 years
• King Tutankhamen’s tomb held about 1.5 tonnes of gold
• Gold became the first official international medium of exchange in 1500 BC
• Humans first used gold for coinage around 700 BC

Each of these are prime examples of why it’s a good idea to buy gold right now. Regardless of the metal’s current price level, history shows us that it retains value over time. People have long passed wealth down to newer generations by converting their money into gold.

Think about that relative to other wealth. For instance, $1 million in 1920 would have been a massive fortune. If someone at that time had simply given their descendents $1 million in cash, though, the money would still be worth only $1 million today.

What if they had used that $1 million to buy gold instead? The price of the metal dropped to $270 in 1920, so they could’ve bought over 3,700 ounces. When gold hit the $2,000 mark in 2020, that hoard would’ve been worth $7.4 million.

Too bad they didn’t have blogs telling them why they should buy gold right now in 1920!

2.  Gold’s Natural Trend Is Upwards

Gold does a tremendous job of storing value, and this value is universal. That means no matter where you go on earth, the precious metal is worth just as much. This is a major benefit over fiat currency and why many people feel that buying gold right now is always a good choice.

Of course, this is far from the only benefit of buying gold coins and other bullion types. After all, there are alternative investments that hold value over time. What’s so special about gold? Just the simple fact that its natural historic trend has always gone upwards.

Over the short term, any investment will fluctuate. This holds true for gold, oil, livestock, energy shares, and other investment vehicles. It’s easy to understand why buying gold right now might be the ideal move when you look at what Investopedia concluded after in-depth research:

“Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.”

While the author of the piece doesn’t go as far as saying people should buy gold right now, he does make a solid argument as to why it’s a good idea. No matter how often the precious metal fluctuates during a given period, history has shown that its natural state is profit.

Of course, not everyone has the same investment goals. Plenty of people want massive short-term gains rather than long-term value. If you fall into this category, buying silver bullion or other precious metals with more volatility may be right up your alley.

When going this route, though, it’s important to research your investment decision thoroughly. It might be a great time to buy gold right now, but more volatile assets can create big losses just as quickly as big gains. Vigilance is the name of the game regardless of your investment strategy.

3.  Hedge Against Inflation and Devaluation

One part of the Investopedia quote above should stand out more than the rest. That’s the statement that gold serves “as a hedge against inflation and the erosion of major currencies”. That explains why buying gold right now might always be the right answer.

In fact, it’s why people have long chosen to park their money in the precious metal. As inflation rises, the value of the dollar goes down. In addition to offering less purchasing power for common items, it also means you will need more money to buy gold.

That is why you’ll see the price of gold jump during high periods of inflation and other economic turmoil. Bullion has served as a safe haven throughout history. Regardless of when you’re reading this, buying gold right now is the right answer if you fear inflation.

Just consider these major periods of American history:

• The price of gold jumped from $63 to $106 per ounce between 1972 and 1973. This was the same time inflation was rising from 3.4% to 8.7%.
• If you had gold between 1978 and 1979, you would’ve seen its value more than double thanks to inflation increasing from 9% to 13%.
• In the early 1980s, consumers felt the squeeze when inflation climbed to nearly 15%. If you had gold at this time, though, you would have benefited from its value growing by a factor of 15 and reaching a new record high.
• Between 1986 and 1987, inflation quadrupled. That’s in a single year. Those who owned gold, however, saw its value climb by more than 20%.

These are just a few of the examples when inflation showed the true value of gold. If you’re on the fence for buying gold right now, you need only realize that inflation is a natural trend. It’s why a dollar can’t buy nearly what it was once able to. It might also be why gold value increases in the long term.

Of course, there are other currency devaluation issues to worry about. Even when inflation isn’t occurring, the U.S. dollar can lose value relative to other currencies. This is another instance when investing in gold can prove beneficial.

While precious metals certainly have international value, we express the price of gold in U.S. dollars. This means when other currencies have higher values, the dollar doesn’t hold nearly as much buying power. This is just one additional reason why buying gold right now might be ideal.

Get Started Buying Gold Right Now

Few investments have a history as extensive as gold. Long before international markets dictated the value of commodities, people used the yellow metal to protect their financial futures. The only thing that’s changed since ancient times is that gold holds far more value than it once did.

Of course, you should base your investing on your own individual economic goals. While gold’s natural direction is upwards, there are times when the precious metal’s price will decline. If you’re looking for a short-term investment, an option like silver may better suit you.

At Silver Gold Bull, we want each of our clients to make the best investment decision for themselves. This could mean buying gold right now, or it could mean opting for other bullion in the short term. If it’s the yellow metal you desire, though, visit our Gold Bullion page today.