Gold is intrinsically a transitional metal but it is the metal most of us rely on when other forms of currency don't work. It acts as an insurance against inflation and deflation that is why more and more people invest in gold jewelry in the Philippines. Although paper currency is the money of choice, gold is always considered as a universal currency or a world reserve currency.
Here are the reasons why you should buy gold jewelry in the Philippines:
Perfect hedge against inflation
According to Investopedia, inflation "is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling." Therefore, the cost of living also rises as well. It has been proven by investors that for more than 50 years that gold prices shoot up during high-inflation. Now, as the pandemic continues to cripple economies, the CNBC reported that gold prices inched higher earlier in July 2020 to trade over $1,800 per ounce.
Maintain its value and liquidity
Even if the price of gold plunges, it still holds its underlying value because it is considered a commodity compared to paper currency, which holds no inherent value.
On the other hand, you can easily convert gold into cash no matter where you are in the globe. Its liquidity and universality is unmatched. This fact is supported by the World Gold Council's latest edition of Gold Investor where they lauded one of gold's attractive aspects which is its liquidity.
Offers protection during deflation
The versatility of gold is truly unparalleled because it can be an effective hedge not only in inflation but also during deflation. Based on the Reuters article, "Historical precedents suggest that gold’s worth is powerful during deflationary periods."
In other words, it remains the strongest despite the slowness of business activity and even if economies are crippled by excessive debt.
Valuable ingredient in various products
Gold is indeed a very useful metal of all the minerals mined from the Earth. It is a valuable component in electronic devices, dental fillings, medicine equipment, space shuttles, glasses, and jewelries. That is why gold is here to stay for a very long time. In addition, since gold retains its high-demand, markets can further increase the price of gold.
When and how: Gold as an investment
Now it is the perfect time to store in a vault your wedding and engagement rings, and other forms of gold jewelry. But when is the best time to buy one if you don't have one? Albert Cheng, CEO of Singapore Bullion Market Association, answered this question during his interview with CNBC. He said, "There is no good time to buy gold ... every investor should have some."
The next question is: how to invest in gold? There are four ways you can buy gold, such as through physical gold bars and coins, ETFs/ETCs, gold-related stocks, and gold-backed cryptocurrencies. Or you may start purchasing pieces of gold from jewelry stores in case you don't have it yet in your collection.
Meycauayan Jewelries is the home of the finest gold jewelry in the Philippines. We have engagement rings and wedding rings in the Philippines. For inquiries, email us at email@example.com or call (044) 812 1902. You may also visit our Facebook page to check our latest collection.