I’ll be discussing why purchasing gold as an asset prior to the 2020 recession or any economic collapse may be a good way to diversify your portfolio and protect the value of your assets. Enjoy! Breakdown:
Gold vs. Money 0:28
Our currency used to be backed by gold until the gold standard was terminated in 1971. From then on, all money was fiat money, which just means that the money itself has no value. It’s just valuable because the government says it is and as a result we all use it for daily purchases and investments.
The problem with FIAT money is that the government could print more when it needs it, thus leading to inflation and devaluation of the currency.
The problem with the Gold Standard is that it can lead to deflation during prosperous and expansive economic times.
Why buy Gold? 2:01
Being that Gold has worldwide value through tough times or not, it will provide your portfolio with some much needed diversification and stability in the event of a recession.
It has a history of going up during recessions and economic turmoil and the people who own it during the recession usually come out ahead.
You should invest in gold for the following reasons 3:41
1. It gives your portfolio some much needed diversification
2. It Preserves your Wealth through tough economic times and catastrophic events
3. It acts as a hedge against inflation (since it keeps its value better than money)
4. And it gives you buying power
Buying power is the ability of one asset to purchase another asset. During an economic decline, many investors rush to liquidate their holdings and pull out cash. This is actually a BIG mistake because their cash will go down in value due to inflation that occurs during this time period.
With Gold, you have the ability to retain buying power since it holds its value during recessions.
What you should NOT do 5:11
Never liquidate a large portion of assets and holdings in order to purchase gold. We want gold to be around 5-10% of your total assets.
Never buy too much gold! We want you to have a diverse portfolio in order to withstand any economic downfall.
Disclaimer: I am not a financial expert or advisor. Please take any advice given in my videos with your own personal consideration. I do not guarantee any sort of results as this will vary from person to person.
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