Gold has always signified wealth and power. Since the beginning of time, civilisations have hunted for gold. Our ancestors loved gold and saw it as a foundation, an investment, and a form of prestige. Our ancestors’ romanticism for finding and owning gold is still around today. Gold has historically given good returns on the stock exchange, and financial advisors view it as a defensive investment and a commodity required for a diversified portfolio.
Clever investors buy physical gold as well as gold shares to balance financial portfolios. Buying physical gold can be daunting, and gold dealers Brisbane can professionally take you through the processes of buying, selling, and storing your gold bullion. Gold bars can be exchanged for cash when needed, and that is a huge advantage of owning physical gold.
Gold in modern times
Americans could exchange dollars for gold in the early 1900s. In 1933, President Roosevelt instructed all Americans to hand in their hordes of gold. They were paid $20.76 for one troy ounce of gold. Anyone who did not comply was fined or sent to jail. Although all American residents could not own gold, foreign governments could still trade their dollars for gold. The US dollar strengthened, and other countries used the dollar as a sounding board for the image and value of their currency. When Roosevelt brought this legislation in, other countries like Australia also nationalised their gold.
Goods were traded in US dollars because dollars equated to physical gold stored in vaults. The American laws changed again in 1971, ending all links between gold and the US dollar. Mints could print as many US dollars as they needed, and since that time, the dollar has dominated world currencies for decades. The offshoot of this was inflation and differences in people’s wealth. Investors coined the term fiat money. Fiat money bases the strength of a country’s currency on the country’s stability and economy.
Why you must buy physical gold.
In 1974, the American people were once again allowed to keep gold as an investment. Many countries followed suit, and today you can buy gold from the many retail or online dealers in your city. You can keep any amount of gold in your possession. Gold dealers buy and sell gold bullion, and gold dealers Brisbane can assist you with advice on prices, gold in general, and storage and security of gold. The demand for gold bars and coins grew 10% in the last quarter of 2020. 60% of all gold bought has been in a physical form. Gold has historically proved that it is a sustainable commodity. Many financiers believe that buying and selling physical gold or gold bullion is a worthwhile investment.
If you want to buy or sell bullion, contact a dealer for advice. Dealers must make a profit and so both parties need to be accommodating in the negotiations. If you are selling a coin or a sentimental piece of jewellery it is important to realise that the value of these is in the gold and not in the design or sentimentality.