U.S. Money Reserve: What Makes Gold Your Strategic Asset in 2020?

Since the start of the year, the news has kicked into high gear, with warnings of global setbacks abroad and domestically. Tragically, Australia has already lost 10 million hectares of land to the bushfire crisis. The relationship between the U.S. and Iran has heated up, cooled down, and then heated back up again, provoking acts of aggression from both sides. The United States and China have engaged in a trade war, and the still widely misunderstood Chinese Wuhan Coronavirus outbreak has come into the spotlight. Brexit threatens the European economy, while the impeachment trial undermines the U.S. economy. Lastly, the yield curve is threatening to invert, which may be an early indicator of upcoming economic recession. Geopolitical uncertainty across the globe is leading to monetary uncertainty.

Gold has been revered and respected in society for millennia across many cultures; its history is as rich and interesting as the people and cultures that have relied on it. Gold is still trusted to this day and sought after in society, partly due to its past and its innate characteristics.

In modern times, gold is still sought after for many reasons, such as its convenience. Gold is a precious metal, so it does not deteriorate or get worn down like cash. It also does not burn, nor is it affected by water or humidity. Gold is hearty, stable, and easily stored in a safe place with little thought. Its convenience comes from its lack of fragility. Along with being easily stored away, gold is also known for its ability to be formed into beautiful pieces of jewelry such as necklaces, watches, and rings.

Another reason that gold is sought in times of global distress is that it is easily and readily liquidated and verifiable. Whereas modern U.S. money is proven legitimate through criteria such as special dyes, holograms, and other anti-counterfeit measures, gold does not need a hologram, barcode, or any other measures to prove its validity. The market value of gold can be assessed by its weight and purity. These easily testable variables can be checked on any piece of gold, such as a ring or necklace, but it is better to use a solid piece of gold, like U.S. Money Reserve coins. When looking into buying solid gold or other precious metal pieces, such as coins or bars, as a safe-haven asset, it is important to be diligent in your research. U.S. Money Reserve sells U.S. minted and backed gold coins of varying sizes and weights. U.S. Money Reserve also has a free precious metals resource library.

When the economy is stagnant or in times of deflation, people look for ways to store their money for safekeeping. A common and safe way to hold capital is through gold ownership. The U.S. economy has not seen true long-term deflation since the 1930s but has since seen times of economic stagnation due to geopolitical turmoil. 

Gold ownership can act as a safe haven from certain economic downturns and unrest and is a great way to diversify your wealth portfolio. Diversification means owning assets that are not closely related. Owning physical gold, for example, is a great diversification tool that allows portfolio owners to have a physical and tangible grasp on some of their portfolio. U.S. Money Reserve coins are authorized and fully backed by the U.S. government for their gold content, weight, and purity. Properly diversifying your portfolio helps decrease its volatility, protecting you and your assets from large economic changes. These economic changes can come from tariffs, modification of technological advances, housing market shifts, and many other variables.

Since gold is tied to a monetary number – usually per ounce – when inflation increases, the price of gold increases along with it. Gold can be a great way to help hedge against inflation. Also, gold is known to increase in price rapidly when the world is faced with tumultuous economic circumstances. The global banking and holdings system is a complex and large system of interconnected world banks, stock markets, reserves, and other financial institutions. The system involves an array of checks, balances, and government oversight, but it can be hard to navigate. 

Owning certified gold coins from U.S. Money Reserve can allow you to protect yourself from holes in the system or collapse of institutions. Historically, gold has done well in times of economic unrest and uncertainty. When the economy is at risk, gold can be a safe-haven asset that can help lower the overall risk of your portfolio. 

About U.S. Money Reserve

U.S. Money Reserve is a AAA-rated provider of government-issued gold coins. U.S. Money Reserve specializes in coins authorized by the U.S. Congress and fully backed by the U.S. government.

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