GOLDEN RULESThe beauty of gold investment
If you had the means, would you pay nearly half a billion dollars for a piece of art? Well, in 2017, someone did exactly that. Through Christie’s auction house, Leonardo da Vinci’s painting Salvator Mundi sold for a whopping $450,000,000, and became the world’s most expensive piece of art. We would imagine that the collector forked over this kind of dough, not only for the prestige of owning a historical masterpiece from none other than Da Vinci himself, but also for its value and future worth as an investment.
Leonardo da Vinci’s Salvator Mundi, c. 1500
Purchasing something of great beauty is first and foremost an emotional experience. Something catches your eye and captures your imagination, and before you know it, you’re in love. Rational thoughts often come last. Unfortunately, most clothing and accessories that we purchase these days, including those sold by luxury designer brands and many pieces of fine jewelry, have little to no future resale value or worth. The exception to that rule, however, is 22 and 24 karat gold jewelry.
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Auvere’s 22 and 24 karat gold jewelry gives the wearer that love-at-first-sight, emotional connection while serving as a brilliant investment. It’s okay if you’re not naturally hard-wired to think dollars and cents first because Auvere has got you covered. Here are four hard and fast golden rules to the benefits of gold investing and how an object of desire can enhance your style and portfolio mojo.
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RULE #1: Gold is economic security.
Gold is currency. Let’s clarify this a bit. While gold no longer officially serves as money, it has long been considered a reliable and powerful alternative to paper currencies. Gold is actively traded and stored, and while not used as a means of direct payment for daily use, gold is liquid and may be easily converted into any currency with virtually no issue. But unlike paper currencies the supply of gold cannot be easily printed at the whim of the government.
The primary use for gold currently is in the creation of jewelry. Indeed, gold jewelry surpasses bars and bullion as the most common form of investment in physical gold. In addition to its lustrous hue, the fact that pure gold is hypo-allergenic, does not tarnish and is virtually indestructible makes it ideal for jewelry. It is a boon that on top of its ideal characteristics for jewelry, gold is a reliable and predictable investment.
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RULE #2: Gold can be a safe haven for your wealth.
It’s no secret that the current social and political climate around the world is unsettling and increasingly unpredictable. Economic and political instability often affects financial markets negatively. Traditionally, that is when the value of gold rises. It has long been considered a hedge against the dollar. Investing in gold (including gold jewelry) is a true safe haven for consumers because gold maintains its intrinsic value as an asset. Gold is the best performing large asset class since 2000, surpassing both US stocks and bonds.
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RULE #3: Gold protects against inflation and a declining dollar.
The value of the US dollar has been in a steady decline for over a century. Such decline means that each dollar buys less gold (and everything else) or said more simply – the value of gold has gone up in dollars. It is also interesting to note that as inflation increases, the value of gold increases -- typically well above stock market indexes. Rising inflation is caused by a number of economic factors that are in place today – tight labor markets, a growing budget deficit and national debt, tariffs and rising oil prices. Gold maintains its value even in the most challenging of economic times.
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RULE #4: Gold is a smart portfolio diversifier.
Because gold does not behave like paper currency, stocks or bonds, gold stays relatively balanced as an investment. It is as important to diversify your portfolio as it is to protect the wealth you’ve created. Investing in an array of diverse stock categories is essential, as well as investing in physical gold, which has little to no relation to other financial assets. Gold remains outside of traditional currencies and currency exchange rates and remains unaffected by declining global currencies and stocks.