When it comes to hedging for future financial uncertainty, one of the best hedges for the future as well as for today are with investments in precious metals, more pointedly, in gold. That is why the American gold eagle is an excellent physical gold investment that can pay off in huge returns both now and for the future.
Volatility is an issues that most investors will have to contend with, and this volatility can come from many different sources. One of the most troubling is currency that loses value. With the state of geo-political affairs, something that goes on in the US or in the European Union can cause currency values around the world to plummet, sometimes in dramatic fashion. This can cause huge problems for investors.
The Potential for Lose
When a person’s portfolio is measured on it’s cash value, nothing is more destructive than when a currency on which a portfolio is predicated loses value. This not only can affect individual investments, it can also have a huge impact on the value of a portfolio as a whole. If the portfolio is rather large, an investor can lose a huge chuck of their portfolios value in a matter of a few hours, something that may have taken many years to build.
Unaffected by Market Shifts
However, while these drops in value, whether they are small or large, happen, a good way that investors use to balance out this dips in currency value is to have a certain amount of investments in gold. The value of gold is not established by a government and when currency may be in a free fall, the value of gold my be largely unaffected, at least in the negative. Many times, when currency value is volatile, gold values tend to rise, sometimes in dramatic fashion.
While there are many types of gold investments, legal tender coins offered by many countries throughout the world, like the US Gold Eagle are excellent items to own. Not only do they retain their value in gold, regardless of the stability of the county that issues them, they also can rise in value over the years making it an excellent individual investment as well. If you like the possible of a rise in gold values and if you’re looking to protect your portfolio from volatility as much as possible, you may want to consider investing in gold today.