HISTORY OF GOLD: JUST ONE OF MANY INTERESTING HISTORY FACTS:
If you look at Germany in January 1919, before the war a person in Germany could buy an ounce of gold for 170 Marks…
4 years later due to the turn of events a person in Germany needed 87 TRILLION Marks to purchase the same ounce of Gold.
Experts advise us to watch and see what happens when the WORLD’S Reserve Currency (US Dollar) eventually goes belly up. The reckless printing cannot continue for much longer.
Gold has ALWAYS been the answer…
It’s the only thing that lasts a lifetime and stores it’s value…
and it’s not “man made”..
Gold has been used as money for thousands of years and has been the only store of value to truly endure. Proving resistant to inflation and outside of the control and whims of Kings, rulers and today’s central bankers, nature’s money has stood the test of time.
Civilisations and their economies throughout history have benefited from their strong gold currencies and gold money. The Persian Empire’s success and trade was built on the gold Daric, the Ancient Greeks also used gold based money, whilst the city states of Rome and medieval Florence also owed their success to the gold Aureus and Florin respectively.
In modern times, ties to gold were cut after the failure of the Bretton Woods money system, launched in 1944. Bretton Woods established the gold bullion backed dollar as the world’s reserve currency, which could be exchanged on demand for gold bars at the Federal Reserve. As other central banks lost confidence in the management of the dollar, they increasingly traded in their dollars for gold investments, causing a run on US gold reserves. In reaction to this president Nixon severed the dollar’s link to gold bullion in 1971, ending the dollars gold convertibility and thus creating today’s system of freely floating paper currencies.
In today’s world of unstable markets and creeping inflation, gold is now increasingly seen as the world’s real reserve currency, with dollars, euro and pounds losing up to 90% of their purchasing power in the last 40 years alone. As central bankers rely on printing money and national debt levels rise alarmingly, gold’s unique properties as money are being recognized once more.
Gold for savings not investment
Since the turn of the millennium, the housing bubble and the financial crises that followed has made ownership of gold extremely popular. 12 years or steadily rising gold prices has rewarded those that possess gold. Gold’s qualities as a safe harbour have been newly appreciated by modern day savers.
Karatbars does not allow or endorse its affiliates referring to gold as an investment. Investment conjures risk as the price of gold can go up as well as down. Choosing to buy from Karatbars, gold bullion is more about saving and wealth preservation. When you look to buy gold you are first taking steps to maintain your purchasing power as a hedge against inflation.
As we all know, gold does not pay interest or a dividend, but its supply cannot be increased by man in contrast to paper money. You cannot print gold. Physical gold is also vastly different to other investments, in that it has no risk to counter parties or banks, and its value can never go to zero like bonds, equities and other financial instruments. It’s for this reasons that our clients tell us they use our platform like a saving account for gold bullion.
Should I buy gold today? Gold savings is prudent and way to diversify a portfolio, reduce risk and protect yourself from the financial system, banks, and inflation. For these reasons gold has proved ideal for smart savers looking to secure their wealth and preserve their purchasing power.