Why Invest In Gold?

The only asset that has been regarded as universal "money" for a very long time: gold. Gold hedges against inflation and preserves purchasing power. In addition, gold can be used as a financial asset for financial insurance, risk reduction, and hedging. Historically, gold has always been the best form of money and the best store of value. Gold is the asset that central banks and investors gravitate to during times of crisis. As financial repression and market volatility continue to plague the world, physical gold is once again making a comeback as the ultimate form of money. Keeping real gold in the form of coins or bars is a worthwhile asset preservation choice.

 

Gold as a Store of Value

Gold has maintained its purchasing power through time, a phenomenon that has come to be known as "The Golden Constant."

A modern ounce of gold may purchase a comparable quantity of things as it did in the past. Gold is the best long-term inflation hedge and the ultimate store of value. On the other hand, paper and fiat currencies, gradually lose value until they are useless. When compared to paper or fiat currencies, gold is the most valuable kind of money.  

The gold price is closely watched by financial markets and central banks as an indicator of future inflation, commonly known as inflation expectations, because it responds to changes in the overall price level and enables real gold to retain its worth. For this reason, the price of gold is frequently used as a proxy for inflation.

 

Gold as a Safe Haven

As a recognized and tested safe-haven asset, gold may act as a safety net during times of inflation and currency crises as consumers shift some of their wealth into gold. The price of gold almost always rises during financial market or economic downturns. This move into gold is based on past performance, which shows that most other assets' counterparty and default risks rise during times of market turbulence, while gold maintains its widespread reputation of stability. 

As a result, gold takes on the function of financial insurance against systemic financial system risks, geopolitical threats, and monetary crises. Small denomination physical gold bars and coins are frequently sought after during extreme economic events like hyperinflation and currency crises because they have a high value-to-weight ratio, are portable, and maintain their value during times when fiat currencies lose all of their value.

Furthermore, gold's liquidity is particularly important during financial crises because other financial assets are more vulnerable to counterparty and default risks. In addition, physical gold can serve as a hedge against the natural depreciation of fiat money. Fiat currencies frequently devalue due to inflation and expansionary monetary policies, but physical gold has a limited supply and cannot be depreciated. The sustained long-term incremental depreciation of the US dollar in terms of gold from April 1968, when the US dollar price of gold was only $35 per ounce, to the present can be used to illustrate the currency hedging properties of gold.

 

Why Choose Physical Gold?

Although the global market offers a plethora of paper "gold" solutions, the majority of these do not grant you legal ownership or possession of any physical gold, and none of them are as secure as having allocated gold bars or coins in your possession or securely stored in storage in a stable jurisdiction. 

For example, gold-denominated exchange-traded funds (ETFs) prohibit their holders from obtaining physical ownership of the underlying bullion. Mining stocks are an additional investment option that involves investing in gold, as they offer leveraged exposure to gold prices. However, these stocks also carry the risk of nationalization and company-specific risk. Since physical gold is not subject to third-party liability, it is a tangible asset that you can keep in your possession. 

Since no central body issues physical gold, there is no counterparty or default risk. 

Investing in gold is the most stable unit of account and store of value known to mankind. 

The most renowned refineries and mints in the world, such as PAMP, the Perth Mint, the U.S. Mint, and the Royal Canadian Mint, are among the many gold bars and coins that Mercury Gold offers. Consumers have the choice of having their gold delivered to them or having it safely stored in Mercury Gold's secured storage facility in Kuala Lumpur, Malaysia.