Gold as Safe haven
Gold as Safe Haven, For many centuries gold has been considered a haven. Most of the People don’t know about this concept. In today’s economic crisis and uncertainty situation not only in Pakistan but all over the world. Gold as safe haven is considered because it is a stable and secure asset, its value and prices will not go down as compared to other things such as currencies, and stocks.
A brief history of investing in Gold
In the previous era, People turned their investments into gold because they knew that it was the safest investment to save their money and it is the safe haven for the future. This is because gold has a historical value People are considering gold as a safe investment because they know its value will not fluctuate as compared to other investments. Gold will always give profit to them.
Gold is the way to success
Gold does not belong to any specific culture or tradition it’s a universal asset. Many underdeveloped countries developed based on gold reserves. Gold has a very important role in pushing the economy of any country. Gold as safe haven is considered due to its economically stable or firm statistics in the world.
Gold as Billionaires Choice
Many billionaires all over the world are billionaires because they invest in gold some of them are Indian families, Royal Families of Saudia Arabia.
John Paulson, John Paulson is the American billionaire who owns the biggest private gold reserves.
Countries with Gold reserves
If we talk about the countries that own the most gold reserves in the top position the United States has the largest gold reserves in the world his gold reserves are the combined gold reserves of Italy France and Germany. Russia is also among those countries with the world’s largest gold reserves. All these countries’ economy is incredibly strong and these countries give loans to other countries.
Why gold is a safe asset?
Human always prioritizes the safety of their life same goes for the safety of their money. That’s why they always select investments that do not give a loss in times of economic crisis or economic deflation. For example, when the world economy is at its worst stage few things don’t lose value during the worst economic crisis.
Our forefathers always give an example that 2 things will never lose their value land and gold. But land loses its value over time because a huge ratio of scamming is involved in land. But at the same time, gold is the only asset that does not lose its value according to the time because of the theory that is Gold as safe haven
Here is another example of gold in the country’s economy. The country only prints its currency as much as gold reserves in a state bank. A country’s total currency is set according to the total gold reserves in the bank. Such instance country decides to print one billion currency they will only do so if the one billion of gold is reserved in the bank.
Gold as the safest asset:
For example, a country has 10 kg gold government decides to print one million currency One tola gold is worth 1 thousand Pakistan rupees but if the government decides to print 10 million currency the gold worth will be 10 thousand Pakistani rupees because the government decides to print 10 times more. The government decides how much currency will print when a country faces an economic crisis More currency is printed.
Similarly, if a person has a gold worth of 1 thousand as the passage of time gold value increases by 10 times, oppositely a person having a currency of one thousand rupees his currency value will be 10 part of the total worth of gold. That is why multi-millionaires and multi-billionaires around the world always invest in gold they know their profit in gold will multiply.
