Gold is considered by many people as an effective “vehicle” that can be used both for investment and for the protection of assets, especially when there are turbulent periods in the global economy, an example of this are the crises generated by health, political, economic and military factors (wars). Here are some reasons why some people decide to buy gold in times of crisis.
Security and ease of exchange
One of the reasons why people choose this metal to invest or protect their assets in difficult times is the security it generates, since it can be exchanged anywhere in the world regardless of its presentation (whether they are bullion coins, Jewelry or gold bullion), this characteristic allows this metal to be considered as “global money” since its value does not depend on political or financial decisions of certain governments or authorities, which gives greater security to its owners.
Properties and uses
Gold is the most malleable and ductile metal, this means that one gram of gold can be compressed and shaped until it occupies a large surface space. At the same time, gold has many practical uses due to its high resistance to corrosion and oxidation, added to its quality as a conductor of electricity that favors it for use in the industrial sector such as modern dentistry and electronics. It is important to note that 40% of global gold demand is used as an asset/means of investment, while 50% is used for jewelry and the remaining 10% is used for the industrial sector.
Inflation Protection
Times of crisis directly affect the economy and the currency of a country, this can generate a loss of purchasing power of people and a lack of confidence in the currency or local currency. The problem is that in times of crisis, inflationary periods occur exponentially and unexpectedly, due to this, many people seek to protect themselves from possible inflationary processes by Gold rate in Dubai.
Reputation
Due to the great number of years being used by man (more than 5000 years) gold has a good reputation, since it has played a fundamental role in different crises and wars that have occurred in the history of humanity, since during all those During difficult times, people who protected their assets in gold were not affected, while those who trusted in the currency or local currency were harmed.
Independence
Unlike other alternatives, gold has the ability to be independent of any system, medium or government, an example of this is the dependence that other assets have, for example shares depend on the stock market, while Bitcoin depends from Internet.
Cultural aspects
Gold has played an important role in different cultures throughout history, since it is a metal that is closely associated with divinity, wealth, aesthetics and prosperity, these factors make many people prefer it, especially in times of crisis, since it is in these periods where people experience their own fears and concerns more markedly, this makes them think or reflect on the events or occurrences that generated said crisis, which causes them to wish to have greater security or reconnect with certain values that gold represents, which makes many people decide to buy this precious metal in difficult times.
What do you think about this topic? Do you know other reasons why people decide to buy gold in times of crisis?
If you want more information about buying gold in Dubai you can know today gold rate in Dubai.
Gold rate in Dubai 