When you buy Gold and put it away in your safety deposit box, it sits there and does absolutely nothing. Gold bullion is a beautiful and unique investment, part of the only asset class of its kind that grows in value over time and retains these values to an investor.
This is what makes Gold unique:
Physical Gold does not have the stock risks of bad management, loans that can’t be repaid, its free of business downturns, needs no government permits, has no employees, and no union problems.
Gold does not depend on financial institutions, banks, politicians or governments to establish its value, authenticity, or authority.
Once you have your physical Gold in hand, there is no third party liability or credit risk or chance of fraud as with Gold ETFs or others who store your Gold.
Gold is trusted by all major countries to be a source of stability and liquidity to back their currencies.
Gold does not depend on the performance and health of the wider economy.
Long-term Gold provides excellent portfolio diversification.
Physical Gold is a precious metal with intrinsic, historic value as money.
Gold has been a reliable medium of exchange for several thousand years.
Gold coins or Gold bars remain the ultimate form of financial insurance.
By Contrast— Gold vs Paper Money
Every paper currency has failed to hold its value given enough time.
A U.S Dollar is paper with ink printed for the Federal Reserve. Once issued it is an I.O.U. — a debt obligation of the United States Government.
Gold is not a debt instrument nor does it depend on a mere promise to pay.
Now, let’s look closely at the money we use today.
What is a Federal Reserve Note?
A Federal Reserve note describes the paper currency in denominations from $1.00 to $100 that circulate in the United States and worldwide. The US Treasury prints the Federal Reserve notes at the instruction of the Board of Governors and the twelve Federal Reserve member banks.
Each Federal Reserve Note is equipped with security features to prevent counterfeiting and identifiers to provide information about the note.
The Federal Reserve may order new paper currency (or electronic money) at any time, for any reason. Most recently, creating several Trillion Dollars to support the Covid 19 Pandemic.
Federal Reserve Note Designs Can Change at Any Time
This is a mock-up design the Treasury Department created for a future $20 bill.