When discussing the numerous potential benefits that come with gold ownership, the topic of gold being the only true form of money is always a focal point. The yellow metal has been regarded as such for centuries and does not carry the risks that come with fiat currency.
The notion of gold being the only real form of money that exists is evident in the U.K. currently. With a March 29 deadline for a Brexit deal quickly approaching and the potential for a hard Brexit seemingly on the rise, investors are getting increasingly skittish. In fact, the uncertainty surrounding Brexit is fueling a large degree of risk aversion and investors are looking to plan for what could be a major devaluation of sterling.
A recent article from kitco.com reported that Merrion Vaults, an Irish-owned and operated gold brokerage and safe deposit facility located in Dublin, saw a 70% rise in clients from Northern Ireland in 2018 as investors look to trade their cash for gold bullion.
The potential for a significant currency devaluation may lead to further buying and market strength as Brexit deadlines approach. The next vote is set to take place on January 29th, two months before the deadline.
Brexit is not the only issue at stake. As the current global economic slowdown accelerates, central banks may once again be forced to start cutting interest rates or even begin various easing measures. If the U.S. elects to implement fresh QE programs, for example, it stands to reason that the dollar could lose significant value as the market is flooded with more dollars.
Gold’s potential as a hedge against weaker currencies and inflation is well-established, and the current situation in the U.K. simply underscores how important this asset class is for investors looking to protect their wealth and purchasing power.
Although the upcoming Brexit vote may be an area of focus for investors in the weeks ahead, fiat currencies all over the world are at risk. These paper currencies have shown a strong tendency to lose value over time and are subject to the potential for devaluation through central bank actions. As fiat currencies lose value over time, they erode purchasing power as well as net returns. For those looking to build and maintain their wealth over the long-run, it is imperative that they include assets in their portfolio that can potentially offset the negative effects of a weaker currency. Physical gold bullion may be the ideal asset class for such scenarios and if you don’t already have a significant allocation in bullion now is the time to get started.
Adding gold bullion to your portfolio has never been easier. Simply pick up the phone and speak with an Advantage Gold account executive today. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation in this key asset class using your IRA account.
Don’t wait for the negative effects of fiat devaluation to erode your purchasing power further or eat away at net returns. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8583 to get started now.Tags: advantage gold, brexit, currency devaluation, gold, kitco