Gold used to be one of the only forms of currency, meaning the more gold you had, the more money you had, and the less gold there was in the world, the more valuable the gold was.
However, this all changed when people started using modern money, which is no longer made of gold. This was known as the gold standard and was used worldwide. However, as of 2013, the gold standard is not used anywhere in the world. So, is gold worth anything?
How Was Gold Used?
Up until 1930, all coins had some degree of gold in them, and this dictated their value; the less gold in a coin, the less value it held when using it to purchase something. However, after 1930, gold was used more in jewelry and showing net worth rather than in what we used to dictate value.
Around this time, countries and governments created their own coins and financial systems based on either the worth of gold or the value of the dollar.
Britain was one of the first European countries to drop the gold money standard and was not followed by the USA until 1971. It was at this point that international countries started to hold the value of their coinage to the dollar instead of gold.
Although no countries use the gold standard anymore, most countries still hold a lot of the gold that they held during the gold standard period.
Gold has been used for jewelry for as long as records have been kept, dating as far back as 4400 BC. Many people use gold jewelry to show that they have wealth; this was more common earlier in history when there was not as much gold around, and gold was worth more.
Looking back in history, people who had gold jewelry kept it safe or only wore it when they were hosting or out at events; this was to show their wealth. Using gold to demonstrate wealth is the same when we look at royalty. Crowns were traditionally gold and set with precious stones to show the family’s wealth.
Crowns were then passed down and changed depending on the next monarch. However, now in England, there are a lot of different crowns that are reused due to the precious metals and stones used in the creation of the crown, and it is not possible to make others of the same value.
Gold jewelry or gold coins were often used for currency or to pass wealth on to the next generation. Families would pass rings and necklaces for years, using them to get money if needed to keep their families from being without necessities.
This is still something that often happens when people die; they will pass on their jewelry to younger members of the family, although this is not often for financial aid as it used to be. However, gold is still a good way to make money, as you can sell it or pawn it, depending on the weight.
IRA and Savings
Some people will choose to use a gold IRA alongside their 401k or IRA. A gold IRA is a way for them to save for their future or their families. If you are interested in getting a gold IRA, it is worth looking at the Augusta Precious Metals review by IRA Investing.
This gives a breakdown of what a gold IRA is and how it can benefit you, as well as what requirements you would need to have to use Augusta Precious Metals as an IRA investment.
Investing in your future is important, especially with the current economic climate and changes in the world in the last few years. More people are relying on their investments to be able to continue paying their basic bills.
Now more than ever, people are looking at smart ways to invest for the future. If you are already investing or have some savings you want to use towards your retirement plan, it is worth looking into how a gold IRA could benefit you or whether you qualify to apply for a gold IRA.
If you already have your 401k or your IRA and you want to save extra, rather than keeping all of your eggs in one basket, it would be wise to look at other savings options, like a gold IRA.
A gold IRA would give you another source of income when you reach retirement age and need the income from your investments to enjoy your retirement. As we know, living costs are not looking to improve anytime soon, so why delay?
Stocks And Shares
If you are looking for a way to diversify your shares portfolio, it could be worth looking into getting some shares in gold. This can be beneficial because when a lot of the market is in decline, you find that gold is not. Gold rarely rises or falls with other stocks and shares, making it a good long-term investment.
You could put some savings into gold stocks and find that even if there is a decline, you will still be able to cash out and get almost what you paid for your shares back. If not, you may be lucky and cash out at a time when gold is worth more, giving you a little extra in your pocket.
Stocks and shares, even without gold, can be a good way to build yourself some savings for the future. However, it is not as stable as the price of gold and therefore makes savings with gold and gold IRAs slightly more stable for longer-term investments.
Whether you know much about gold or you want to see if buying and owning gold will help make you money. It is clear that gold can hold value; however, this value has depleted over the years with common use. Money is not worth what it was when made of gold, and this is reflected in the market prices.
However, there is value in saving using gold, whether the jewelry you can buy is relatively cheap to sell for more when gold is worth more or using a gold IRA account. Money can still be found in this precious metal, even when we no longer use it in coins.