The value of gold derives from its scarcity as a commodity, as well as from its long history as a stable medium of exchange. The price of gold tends to rise during economic uncertainty and when inflation is high. After the gold standard, gold has become more volatile, but the legacy of its stability remains with us. Since gold is the only international currency that cannot be degraded, people all over the world maintain it as a store of value. This has led to an increase in the number of gold IRA firms offering services to help individuals invest in gold.
This makes gold the most stable currency in the long term. Since the 1930s, when the U.S. dollar slowly disassociated itself from gold, the dollar has lost 99% of its value against gold. This is the destination of paper coins.
Gold has been money for thousands of years because its value is stable. The types of supply and demand problems affecting other commodities are not relevant to gold. Gold is a valuable resource that humans have coveted for centuries. While the price of gold can be volatile at times, it is generally considered a safe and intelligent investment.
But that doesn't mean it's the right choice for every wallet. There are a few things that those looking to invest in gold should remember and some misconceptions that every investor should be aware of.