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  • The Common Guy's Guide To Gold: Learn Gold's Value And How To Invest In Precious Metals

The Common Guy's Guide To Gold: Learn Gold's Value And How To Invest In Precious Metals

gold guide

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TLDR (Too Long Didn’t Read)

  • How Rare Is Gold, Really?: Gold is exceedingly rare, which significantly drives its value, with its scarcity being more pronounced than that of dinosaur bones.

  • A Galactic Treasure Chest Built to Last: Gold's formation from supernovae billions of years ago and its enduring scarcity due to geological processes ensure its value remains high, akin to a cosmic treasure chest.

  • So Do I Just Like…Stack Gold Bars In My Room?: While hoarding gold bars might seem appealing, investing in Gold ETFs like SPDR Gold Shares or iShares Gold Trust through brokerage platforms or opening gold savings accounts at banks are safer and practical options.

  • What About Making Gold With Real Life Alchemy?: Although scientists can create gold isotopes, the process is prohibitively expensive and not commercially viable, leaving natural gold as the primary form used in investments and jewelry.

How Rare Is Gold, Really?

gold bars

Gold is extremely rare, and this scarcity is a huge driver of its value.

In fact, more dinosaur bones have been unearthed than the total amount of readily available gold on Earth.

Plus, because of this rarity, gold has consistently beat inflation.

In fact, over the past 50 years inflation has increased by 631% in the United States.

But the price of gold has increased by over 4,400%.

That’s why gold is like a rock solid metal shield that protects your money.

Plus, owning a bunch of gold is pretty sweet, not gonna lie.

Here’s all you need to know about gold, precious metal investing, and safeguarding your future like Fort Knox.

A Galactic Treasure Chest Built to Last

Gold boasts a unique combination of properties that have secured its value for millennia.

Unlike endlessly printed currencies that lose their buying power over time, gold's story begins billions of years ago in the heart of exploding stars.

This cosmic creation process makes it incredibly scarce.

Gold was formed under the crushing pressure deep within the Earth throughout millions of years. Most of this precious metal lies buried, with only a finite amount readily available.

This inherent rarity ensures gold remains a valuable commodity, acting like a galactic treasure chest that constantly appreciates in worth.

Furthermore, gold's physical properties add another layer of security to its value proposition.

Gold is remarkably resistant to corrosion. It can withstand incredible pressure, cold, and heat, making it practically indestructible.

Remember when Tony Stark added gold alloy to make his Iron Man suit resist the freezing cold of space? That was scientifically accurate.

So Do I Just Like…Stack Gold Bars In My Room?

gold bars in room

Image by Big Money Methods

While it would be pretty sweet to stockpile gold bars at home, it’s not very safe. You could get robbed at any time.

When considering gold investment, exploring Gold ETFs and gold savings accounts provides a practical approach with actionable steps.

To get started, you can select a reputable ETF such as SPDR Gold Shares or iShares Gold Trust, which are known for closely tracking the price of gold.

Research their performance history, management fees, and liquidity by visiting the ETF provider's webpage. Once chosen, these can be purchased through most brokerage platforms where you can set up an account, verify your identity, and start trading.

On the other hand, gold savings accounts offer a simpler alternative for investing in gold without direct ownership.

These accounts can typically be opened at banks or specific financial institutions that offer precious metals investment services.

Start by comparing different banks’ offerings, looking at factors like fees, the ease of converting gold into cash, and any interest or benefits that accompany the account.

Once you select a provider, opening an account usually involves a straightforward application process similar to setting up a standard bank account.

What About Making Gold With Real Life Alchemy?

What about artificial gold, the same way we make lab grown diamonds? Can’t we just create gold like the famous full metal alchemist Edward Elric?

While scientists can create isotopes of gold through nuclear reactions, it's not commercially viable for several reasons:

For starters, the process requires incredibly expensive particle accelerators and a massive amount of energy.

Producing a tiny amount of gold this way would cost far more than the resulting gold would be worth.

The gold isotopes created in labs are also often radioactive, making them unsuitable for most applications. You wouldn't want a radioactive chain on your neck.

So, while artificial gold is a scientific feat, it's unlikely to replace the gold we use in jewelry or electronics anytime soon.

The real gold you invest in will likely remain the product of millions of years of stellar evolution, not a human-made process.

The BMM Takeaway

Because of its rarity, it is extremely unlikely that gold will ever completely lose its value.

It may fluctuate over time with supply and demand, but it remains a safe investment.

It’s most important to remember that gold's value isn't about overnight spikes, but about steady, reliable growth that acts as a shield against inflation, protecting your purchasing power for decades.

This stability is gold's true strength. Unlike stocks and real estate, which can experience wild swings, gold has a history of holding its ground even during economic downturns.

By incorporating gold into your diversified portfolio, you add a layer of security for your long-term goals.

Disclaimer: The information contained in this article is not intended and shall not be understood or construed as financial advice. The team at Big Money Methods have done our best to ensure the information provided in our articles is accurate and valuable information. Regardless of anything to the contrary, nothing through this website should be understood as recommendation that you should not consult with a financial professional to address your particular information.