Gold is a virtually timeless asset whose value rises and falls based on global demand but generally remains unaffected by a national recession. Unlike cash, stocks, and bonds, the value of gold does not fluctuate wildly. Its value remains relatively stable and is subject to a global market instead of a regional or national market.
Gold is valued for its decorative properties and its uses in industrial processes. Very few assets can say the same, making gold a highly sought precious metal valued for thousands of years with no signs of letting up.
The relative stability of gold makes it a great investment during recessionary times. Let’s take a closer look at why that is and whether you should invest in gold when warnings are issued regarding the potential for a national or global recession.
Gold’s Value Often Rises During a Recession
Gold’s value is not based on the particular whims of investors or a national market dependent upon consumers. Instead, it has a uniquely global demand that virtually ensures gold always will be a valuable asset.
When a recession strikes, many commonly held assets, such as stocks and bonds, take a tumble. Many recover over time, but others might completely lose their value and disappear.
Many people who sell their shares in stocks and their bond holdings often look to gold to replace their sold assets. A recession creates an increased demand for gold sales, which generally causes its value to rise. When the value of other assets is tumbling, gold usually rises in value and bucks the general recessionary trend with robust gold sales.
Gold Is a Durable Liquid Asset
Gold is highly valued in the vast majority of nations around the globe. Those nations have gold buyers and exchanges. In many ways, gold is the ultimate global currency. You can take gold just about anywhere and convert it into cash.
Very few assets share that same liquidity level, making gold highly valued. Very few assets enjoy gold’s durability, either. Gold objects have lasted thousands of years, including the headdresses of the ancient Pharaohs of Egypt. Gold will not burn, although extreme heat does melt it. Gold does not rot, decay, or rust like many other items.
Contact Us To Buy or Sell Your Gold
The gold buyers at Harrison Street Pawn and Gun in Paola, KS, pay the market price for your gold assets. Our highly experienced gold and silver experts can determine the quality of your gold jewelry, ingots, and other materials and pay a fair market rate. We are open from 9 a.m. to 6 p.m., Monday through Saturday.