The Gold Bull: Why Gold is A Smart Investment

Some scientists believe our obsession with gold’s magnetizing patina is akin to the shine given off by water, which in ancient days, would be an intoxicating sign for weary nomads, signaling that they would survive another day. Alan Watts believes our fascination with gold is propagated by visions in transcendent states, when inhibitors are far removed. It could be a bit of both.

Whatever the trigger point may be, it is both palpable and well-measured, dating back to times preceding gold’s entry into the realms of having monetary value. And as such, gold has solidified its stance as a lucrative investment since its earliest days in commerce.

History: Gold as an Ancient Investment

Pre-Columbians called gold “the sweat of the sun.” Egyptians were referring to gold when they said, “the breath of God.” Romans coined it as “the muscles of war” (hopefully, combining these doesn’t produce some strange new religion.)

Gold’s symbolism of wealth and power dates back to 4,000 BC, where the world’s first goldsmiths were experimenting with the malleable metal by stamping animal patterns onto gold sheets. Gold worked its way into commerce in 3,000 BC, and the first true gold coins were minted by those in Lydia in 700 BC—now present-day Turkey.

Syria, Egypt, Greece, and Persia embraced their own form of coin following Lydia’s creation to facilitate trade, and the role of gold as a stable form of payment for the last 2,000 years has set the tone for every system of currency today.

The State of Gold Today: The Investment that has Stood the Test of Time

Gold’s value, long-recognised globally throughout history, led it to become a baseline of monetary value as the Gold Standard. Weaknesses surfaced in the system and the standardisation of gold has not been in effect since 1931 in the UK (1971 for the United States), but reliance on gold as something of great value has never wavered.

Take other markets. Uncertainty is what they hate but is what the gold market thrives on. It’s somewhat atavistic, but humans turn to their precious metals when all else appears shaky, and if you take current times into consideration, things could not be shakier—trade wars, presidential tweet storms, Brexit's blues, the largest accumulation of market debt in the history of the world, and an historic ten year overall bull market that looks more unsustainable each and every day. Gold, meanwhile, is never too high, never too low; unwaveringly it holds steady. After a recent climb, gold is at about $1,700 AUD an ounce, the same as it was five years ago, and in terms of purchasing power the same as it was 1,100 years ago. In this age of fiat money’s heyday and at the cusp of cryptocurrency’s ascendency, gold is still money in its oldest and steadiest sense.

Central banks have always held a portion of their reserves in gold, dating back to when they needed to have gold in house to trade for paper money; these days, it remains an ongoing practice as a hedge against fiat money.  And over the past year, central banks are buying gold like never before.

Gold reserves by country as of August 2018 (in metric tons)

Source: Statista.com

“These are the guys with their fingers on the printing press… so they know exactly the effect they have on money,” SafeHaven.com reports. “And right now, banks are buying up gold hand over fist. Central banks currently hold 20 percent of all the gold ever mined—33,000 metric tons. And JPMorgan Chase says they’ll buy another 650 tons this year and next. Why? Gold is for the I don’t knows.”


A Certain Future For Gold

Though the Gold Standard did not stick, gold, just like its inherent characteristics, ferries along a path of timelessness. Harbored in its own unique world of worth, gold has demonstrated a measured history of tangible value. While goods and services diminish in value over time, as a car does when it ages, gold’s growth has continually surged along in upward ticks. Today, there are 196 different types of fiat currency available in the world, and none can hold the world’s largest candle to gold’s resilience as an investment.

Today, in AUD, gold is worth almost $1.7K per ounce. When the Great Recession occurred in 2008, many reverted back to this old and sustainable source of wealth, seeking to mitigate losses. Gold, however ancient its foundations, continues to be a smart modern investment source for individuals seeking long-term growth.


Invest in Gold Now

If you’re looking into gold as an investment, you’ve come to the right place. Jaggards takes pride in being a part of the bullion and rare coin industry and with us, you can find Gold Bars, Gold Coins, Silver Bars, Silver Coins, Banknotes and the latest Modern Coins from both the Royal Australian Mint and Perth Mint as well as a whole range of international Bullion coins.

Start investing in gold with Jaggards today.