Why buy physical gold?
What is Gold Bullion?
Gold bullion is physical high-purity gold minted into bars, coins or rounds. Investment-grade gold bullion should have a minimum purity of 99.5%.
An example of a high-purity gold bullion bar is the 1 oz Asahi Gold Bar, which contains 99.99% pure gold. The popular 1 oz Gold Maple Leaf from the Royal Canadian Mint also has the same high purity level of 99.99%.
Gold was the standard currency for over 5,000 years. It was accepted as payment in many countries around the world, and it was a tangible measure of value.
These days, you can pay for just about anything with dollar bills, plastic credit cards, and crypto coins. They’re convenient and portable, and your funds are instantly transferable.
So why would you want to return to the old ways and keep your money in gold?
Why Invest in Gold?
- The price of gold has increased by 406% in Canadian dollars from the beginning of 2003 to the end of 2023. Gold has traditionally been considered a good hedge against inflation, especially when global currencies continue to be debased and the money supply increases.
- Gold has historically protected portfolios during macroeconomic and geopolitical uncertainty.
- Gold has beat every major stock index on the planet in the last 25 years.
- Annual gold mining production has declined in recent decades, which could place pressure on the available future supply.
- Gold is often negatively correlated with other assets, making it an attractive portfolio diversification.
- Since physical gold bullion is a tangible asset, it avoids counterparty risk where a 3rd party may default on its contractual obligations.
- As a Canadian gold protects aginst currency devaluation as it is priced in US dollars.
Gold Protects Your Privacy
The death of the paper fiat currency is near. A growing number of businesses don’t even accept cash anymore. Instead, they are taking credit cards or installing reverse ATMs to take your cash and give you a prepaid debit card.
This means that all of your money — and your transactions — can easily be tracked. Saving money off the radar and out of the system is now a luxury.
Gold is your ultimate private savings vehicle. It is tangible and real, and it doesn’t get tracked digitally. Nobody needs to know everything about your portfolio. Physical gold will ensure they don’t.
Gold Protects Your Purchasing Power
In 1915, you could have withdrawn thirty paper $20 bills or thirty gold 1 oz coins to buy a nice new car.
Today, with the same thirty gold 1 oz coins you can still buy a new car. However, thirty paper $20 bills will barely buy four car tires.
All fiat currencies lose purchasing power over time due to increased money supply and inflation. Gold has maintained its purchasing power throughout the millennia. The only sound money is gold.
Gold Increases in Value
In a 50-year timespan, physical gold has gained 4500% in value.
Meanwhile, the US dollar’s value has declined by 85% in the same time period. Today’s dollar has the purchasing power of just 15 cents in 1971 dollars.
Gold is still one of the most trusted forms of currency. The IMF categorizes physical gold as a Tier 1 asset (meaning “risk-free” or “zero-risk.”)
Why buy physical gold instead of an ETF?
In an economic or currency crisis, mining shares, ETF’s, and contracts, like all paper assets, can lose all value. With a gold ETF, there is counterparty risk. You are relying on another party to hold up their end of the bargain. Historically during periods of market crashes and instability, the ETF space for metals has had major risks and shortcomings. But physical gold never has. Physical gold is not someone else’s debt and is not part of a system riddled with vulnerabilities.
How to sell your Gold
The gold bullion market is very liquid, meaning it’s easy to sell to bullion dealers. If you purchase from Nugget Stacker, selling back to us is just a few clicks away.
TD Canada Trust customers can sell their physical precious metals at any TD Branch. TD offers competitive pricing based on live market rates for gold.
Whats the next step?
Start buying gold coins or bars with Nugget Stacker, we deliver across Canada discreetly and secure. Also you can join the monthly Gold Subscription and start buying fractional gold. This is a great way to dollar-cost your price on gold.
To get started, contact us for a free consultation: 1-866-644-2121