When it comes to passing down wealth to future generations, physical assets like gold and silver have unique advantages. They are easily transferable stores of value with no account paperwork required.
A growing trend among central banks to reduce their holdings of U.S. Treasuries while simultaneously increasing the percentage of their reserves allocated to gold.
Central banks in 2022 were also more optimistic on gold as a reserve asset, with 61 percent of respondents stating that they expect global gold reserves to increase over the next 12 months.
Gold is a physical asset that can be stored domestically and cannot be frozen by sanctions, unlike foreign exchange reserves, which can be frozen by sanctions.
Gold prices extended their rally and scaled to another record high Monday, propelled by U.S. interest rate cut expectations and the metal's appeal as a safe haven asset.
The gold rally so far has been fueled by robust purchases from the world's central banks in a bid to diversify reserve portfolios due to geopolitical risks, domestic inflation and the U.S. dollar's weakness.
Gold’s long-term return is comparable to equities and higher than bonds. Gold has also outperformed many other major asset classes over the past 3, 5, 10 and 20 years.
Gold should do well in periods of deflation. Such periods are characterized by low interest rates, reduced consumption and investment, and financial stress, all of which tend to foster gold demand.
Since the gold standard was removed from backing the U.S. dollar, “gold has significantly outperformed all major currencies and commodities as a means of exchange.
Fiat money can be printed in UNLIMITED quantities to support monetary policy, as exemplified by the quantitative easing measures in the aftermath of the Global Financial Crisis (GFC) and the COVID-19 pandemic.
Gold held its own and increased in price, rising 21% in US dollars from December 2007 to February 2009 (global financial crisis) while equities, other risk assets, hedge funds, real estate, and most commodities tumbled in value.
Over time, gold can help to enhance the returns of a properly balanced portfolio. And whether gold is going up, down, or sideways, it will also help reduce the volatility of your portfolio.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ahbah
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Posted by ahbah > 2024-03-25 21:42 | Report Abuse
Gold and silver have unique properties that make them an attractive asset for managing long-term wealth across generations.