How much do you really know about what it means to invest in gold? According to the pros who work at Wholesale Direct Metals, complaints about gold investment tend to stem from a simple lack of knowledge. As such, before investing heavily in precious metals, it is prudent to take some time to do some research.
Unfortunately, educating yourself about gold investment is sometimes easier said than done. Simply put, there is much misinformation out there, many rumors and misconceptions about exactly what a gold investment is and why it is advantageous. Read on for some insights into five of the most common gold investment myths.
The gold bubble has burst.
This is a common myth about gold, and it has grown more common in the last decade. Gold has shot up in value in recent years, people argue, and the bubble is sure to burst any time! The problem with this is, first of all, that you cannot have a true bubble until you have full market penetration. Given how few people invest in gold, it is simply incorrect to talk about gold in terms of a bubble.
Also important to note is that “bubble” investments are often defined in terms of paper money. This is foolish, given how untrustworthy fiat currencies are! Paper money aside, the actual purchasing power of gold is, today, the same as it was 10, 100, even thousands of years ago! Forget all about the “bubble.”
Gold is a risky investment.
This could not prove further from the truth. Paper currency is nothing more than a debt-based saving, whereas gold represents true value, real savings. By investing in direct gold ownership, you can hold in your hands something that has intrinsic value, and that will likely increase in value over time. This is as un-risky as investments come!
Some investments perform better than gold.
It is likely true that some investments may perform better, during an isolated period of time, than gold. Of course, such investments come with huge risks. Gold, meanwhile, is not something you invest in to get rich quick. You invest in it for long-term security and consistency.
I’m too old to invest in gold.
Because gold isn’t a get-rich-quick investment, many older, retired investors believe it’s not for them. They think they are too old for gold—yet would anyone ever say that they were too old to protect against a collapsing economy? Would anyone ever claim that they are too old for financial security? Of course not; the benefits of gold are consistent, no matter your age.
Gold is for collectors—not for investors.
This is perhaps the most dangerous myth there is, as far as gold is concerned. The view held by many is that gold proof coins and numismatic coins are only for those who just really love unusual, rare, or collectible coins. Note, however, that none of the products sold by Wholesale Direct Metals are “collectibles,” and none are intended merely for hobbyists. This is a company that believes, quite rightly, that gold is for investors—period.