Gold as a crisis currency

Gold as a crisis currency © Own image

In uncertain times, precious metals, and above all gold, once again come into focus as a crisis currency. Right now, the world is once again holding its breath after the North Korean dictator Kim Jong-Un and the unpredictable U.S. President Donald Trump are engaged in an exchange of blows that could end in a military confrontation or even a nuclear war at any time. But the many European crises, from the euro crisis to the Greek crisis to the refugee crisis, are far from being resolved; at best, they have been provisionally settled and have temporarily disappeared from the news.

At least as a safety cushion against systemic and political risks, gold is therefore once again part of the portfolio of more and more professional investors. Instead of quick returns in the form of interest and dividends, the gold investment is intended to serve as a buffer and a hedge in the event of a crisis.

Gold. A crisis-proof form of investment

For thousands of years, gold and silver have been a rare and coveted commodity as a raw material or medium of exchange. With a gold coin, one could virtually throughout the history of mankind be sure to hold something valuable in his hands. Whether in ancient Egypt, ancient Rome or in the 21st century - gold is always and everywhere accepted. It is not for nothing that the US Air Force equips its pilots with gold coins in order to have exchange values in case of a crash on foreign territory.

Even though the price of gold on the world market is naturally subject to fluctuations, there is never a complete loss of value. After all, precious metals not only have an ideal value as a currency and medium of exchange, but are also in extremely high demand as a raw material in industry.

And if you hold gold and silver as a crisis reserve, short-term profits are not the top priority, but the general stability of value of the precious metals. Nevertheless, it can be assumed that the various uncertainty factors in times of crisis tend to cause the price of gold and other precious metals to rise.

Only physical gold brings real security

But which type of gold is the right one? Today, gold can be bought not only as coins and bars, but also on the modern financial markets in the form of bonds, funds, shares or certificates. But not only that with the holding of such securities is often a big risk and you pay the management of funds or certificates of course, especially gold securities are not tangible in case of crisis.

Physical gold, on the other hand, which is in your own possession in the form of coins or bars, can be accessed immediately at any time. At least if you keep it in a safe in your own home or have it safely hidden away. In bank safe deposit boxes or third-party vaults, the situation can be quite different - but it's certainly better than just holding a piece of paper in your hand.

Als Krisenwährung eigenen sich vor allem klassische Bullionmünzen und Barren aus Gold und Silber. Der Wert solcher Anlagemünzen und Goldbarren orientiert sich tatsächlich am Goldpreis – sprich sie sind eben ihr Gewicht in Gold wert. Der Wert von Goldschmuck und auch Sammlermünzen dagegen setzt sich neben dem Goldpreis auch durch die Verarbeitung oder den numismatischen Wert zusammen und eignet sich daher weniger zur Krisenvorsorge. Bei Gold&Co. können Sie jederzeit Ihren alten Goldschmuck in Anlagegold tauschen.

Small denomination and silver complement

If you decide on a crisis-proof investment in the form of precious metals, we recommend a small denomination of the gold investment. This ensures that in the event of a crisis you do not have to exchange the entire gold right away, but only ever have to exchange as much into money or goods as is necessary.

Daher ist es auch ratsam die Goldvorsorge mit kleinen Silberwerten abzurunden, um im Krisenfall auch geringere Werte zum Tauschen parat zu haben. Auch das Silber sollte in kleiner Stückelung gehalten werden und auch für Laien als Silber erkennbar sein. Wir raten hier auch dazu, statt zu exotischen Silbermünzen auf bekannte heimische Anlagemünzen wie die alten österreichischen Silberschillinge zurückzugreifen.

And even though silver is not completely exempt from sales tax like gold, the differential taxation ensures that silver coins are also available at extremely favorable conditions.

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