If you are a millennial, you are probably still trying to launch a career, secure a job position, and perhaps make enough money to get married and settle down. Things like gold are probably the farthest from your mind, unless you are an investor or a trust fund owner. If you are, or ever have, thought about buying gold, then great. That means you are on your way to securing your future finances. If you have not, then you really should think about buying gold, along with saving and investing, to be better off financially in the coming decades.
Read below to find out why, as a millennial, you should consider buying gold.
Prepare in Advance for the Next Financial Crisis
Let’s learn some simple economics first. The markets never remain the same. The value of currency fluctuates. However, there are serious situations where the economy can dip into a recession, like it did in 2008, when the value of cash assets largely disappears. If the recession becomes a depression, you could be left with nothing because rising inflation quickly wipes out the value of bills you have now.
If you remember the pain from 2008, you should know that there is a way to protect your finances from another situation like that. That’s right, another recession. There is no immunity from recessions in Keynesian terms. Therefore, it’s a situation you should always be prepared for, namely with gold.
Precious metals like gold are valued inversely proportional to currency like gold. So when the dollar plunges, the value of gold soars. When you have assets in gold as well as cash, your wealth is protected even when the economy is doing badly. Gold, here, acts as a hedge against the devaluation of the dollar to protect your overall financial assets. If you own at least some gold, you will have to worry less when the next Great Recession comes around.
Start Saving for Retirement Now. Protect Your Retirement Funds with Gold.
You should plan for your future right now. Namely, millennials should start saving for retirement young for several reasons. It would allow more time for your retirement investments to mature, hence you will get more in returns. Also, it will become a habit so your future finances will always be secure. If you lose money in an investment, you will have more years to pay it back, unlike when you are older and getting closer to retiring.
When saving or investing for retirement, having gold in your IRA or portfolio is crucial for the reasons mentioned above. You never know what could happen in the next two or three decades leading up to your retirement. It’s better to be safe than sorry.
Tips for Buying Gold and Avoiding Scams
Once you have decided to buy gold, you need to find a reputable dealer. Find a dealer with a traceable physical address. The address should be complete, and not just include the street name. Generally speaking, seek out legit and well-known dealers like Lear Capital, which has a prolific online presence at LearCapital.com. Such firms not only offer advice, but also list weekly gold prices to compare selling offers.
Now you know why you need to own gold. So don’t hesitate to add gold bars or coins to your savings account or investment portfolio.