Gold has been considered a precious asset throughout history, and already in the Roman Empire it began to be used as currency. But without going so far back in history, in the 19th century most countries printed paper currencies backed by their gold reserves goldco review. Thus was born the history of the gold standard in the US that established said metal as the only one to exchange paper money. To a certain extent, the staunch defense of the gold standard caused the Great Depression of 1929, and many investors began to exchange their paper money for its gold value, to the point of worrying the US Treasury that their assets could be excessively depleted gold reserves.
The signing of the Bretton Woods agreements in 1944 made the Allied countries of World War II agree to calculate the value of their currencies according to foreign exchange reserves, by then the US dollar was taken as the main reference, since the US it was the country with the largest gold reserves for that year.
However, in 1971 the Bretton Woods system collapsed, as President Nixon established the decoupling of the gold-dollar standard. At that time Nixon was fighting against the stagflation that was affecting the US economy, and which we will explain later.
Today the gold standard “is still in force” and many central banks around the world keep that metal as a reserve for the value of their currency in circulation.
How to invest in physical gold?
Right now you will be thinking about the family jewels, or in those special moments in which a gold gift is always a good option. You are partially right, jewels usually pass from one generation to another, and they never lose value. However, if you are looking for gold simply as an investment, we do not believe that jewelry is the best way, because the sale price includes labor, manufacturing, the commercial margin, and in the end, if we are only thinking of investing, the emotional component carries as much weight as other factors. However, if it is one of your preferences, our advice is to opt for 18-carat gold, much purer than 14.
Physical gold can be purchased directly from a precious metals dealer or, in some cases, from a bank or broker.
Gold bars come in a variety of sizes, from a quarter ounce wafer to a 400 ounce brick, and coins are even more popular with investors.
As always in these cases, we advise you to buy it from safe and accredited sites, far from possible fraud or deception.