According to the investment pros and precious metal experts at Wholesale Direct Metals, complaints about the dollar are commonplace. Really, how could there not arise numerous complaints about the dollar, as its buying power grows smaller and smaller over time, and as the U.S. economy continues to lurch downward? The U.S. dollar has lost 95 percent of its purchase power in the last 100 years, and it is hardly alone; rather, it is emblematic of the problems that come when you put your faith in fiat currencies. No wonder more and more investors are turning to gold and other precious metals!
Indeed, according to Wholesale Direct Metals, complaints about traditional currencies and investments are resolved through investments in gold. The company offers a wide range of products, ranging from numismatic coins to bullion; these products are intended for serious investors, not for mere hobbyists. What’s more, the company is unparalleled in its commitment to spread information about the benefits of investing in gold.
Read on to learn more about Wholesale Direct Metals. Learn about what investing in gold is all about. Also learn why, according to Wholesale Direct Metals, complaints about traditional investments are easily resolved through a focus on gold!
Why Invest in Gold?
To begin with, we might list just a few of the basic reasons why an investor might consider lining his or her portfolio with gold.
- Gold is a safe investment. So long as you have direct ownership of gold, you have an investment that does not depend on a borrower’s promise to pay, as you do with bonds. Thus, gold is a secure investment to have during times of economic volatility. And of course, the U.S. has known nothing but economic volatility for years!
- Gold is also an important way to diversify. Diversification is necessary for investors because it protects against the ebb and flow that can affect a single asset or stock. Most portfolios are “diverse” enough to include stocks, bonds, and mutual funds, but gold is a welcome addition to any portfolio, as it is independent of these other asset types and removes some of your wealth from “the sytem”
- Gold also allows investors to hedge against the dollar. If the dollar’s value declines, compared to other main currencies, then the value of gold increases. Given how unpredictable the dollar is, this is nothing if not significant to today’s investors!
- According to Wholesale Direct Metals, complaints about inflation are common among all investors. Gold, however, helps hedge against inflation. The value of gold has remained constant over time; what an ounce of gold buys today is the same as it bought in Ancient Rome!
- Finally, gold is useful for managing risk. It is less volatile than most other commodities and asset classes. For those who want a secure and stable investment class—not a get-rich-quick scheme, but a way to amass true savings—gold is a must.
What Determines the Price of Gold?
If all of this is true, then some investors will want to know what, exactly, determines the price of gold. It’s a fundamental principle of economics—the principle of supply and demand. The demand for gold has gone up considerably in recent years, yet production has not increased nearly so much—giving gold true value, and worth that is poised to grow for the foreseeable future.
Demand for gold, meanwhile, comes from a few different sources. Jewelry is an obvious one. About two thirds of the demand for gold comes from earrings, engagement bands, necklaces, and the like. Additionally, there is demand that comes from investors. Finally, there is a demand for gold as a component in various electronic products, including phones, calculators, and more.
Wholesale Direct Metals: Complaints About Traditional Investments
There are still further points to consider before you make invest in gold, to protect your portfolio against inflation and against an ever-weakening dollar.
Where Does Gold Come From?
We have discussed the demand for gold, but now we might say a few words about the world’s supply of gold. According to Wholesale Direct Metals, there are a few basic sources of gold production:
- First, of course, there is mine production. Gold mines produce more than 2,485 tons of gold each and every year!
- Gold is also recycled, in many cases. Gold is melted down, refined, and reused—another leading source of new gold products.
- Much of the gold in the world is currently held by central banks, which are smart enough to use gold as a secure, reliable way of propping up fiat currencies.
How Can You Invest in Gold?
Novice investors will surely want to know how they can invest in gold. There are many options available, but not all of them are equally advantageous. Many of these gold investments do not actually involve direct ownership—they do not involve gold you can hold in your hands, in other words. These include gold mutual funds, gold ETFs, gold certificates, and more.
But, according to Wholesale Direct Metals, complaints about traditional investments often stem from the fact that the world’s economic systems are so unreliable. What happens when the U.S. economy goes down in flames? The folks who have pieces of paper, promising them gold, are likely going to find themselves out of luck. However, those who invested in actual, direct ownership of gold will have real, steady, secure wealth, right at their fingertips.
Investing Through Wholesale Direct Metals
That’s where Wholesale Direct Metals comes into play. This is a company that provides investors with numerous forms of gold to hold and to invest in. These products range from numismatic coins to bullion, from proof coins to gold IRA options.
Wholesale Direct Metals helps its clients to:
- Access an ethical gold buying process that was, until very recently available only to bulk or institutional buyers.
- Avoid paying the huge spreads and mark-ups usually found at retail gold sellers.
- Learn how they can invest in ways that help them meet their financial and privacy objectives.
The bottom line is that, according to Wholesale Direct Metals, complaints about traditional investment opportunities and fiat currencies are common. Sadly, they are common for good reason. With that said, those who invest in gold have the chance to create real, secure savings. According to Wholesale Direct Metals, complaints about its gold investment products are all but non-existent.