Gold and its Liabilities

One thing that should be understood by people is that gold is the only asset that is not at the same time someone else’s liability. When this one very crucial point is understood by people, it is very simple to see why gold should be included into an investment portfolio. As everyone knows, when you save your money in an account, make a deposit, you are in fact loaning that money out to someone else and that money is being circulated. When you then go to the bank to withdraw money, you are then taking someone else’s money out and are relying the performance of an establishment, institutions or an individual. Due to the risk that exists, banks will offer you an interest. Stocks in the same way rely on institutions and individuals as well. All this to get to the fact that if something were not to turn out the right way, the person that has invested his or her money may possibly lose absolutely everything. This is something that has been seen in recent times such as what happened in some big Corporate scandals, and the worse thing is that these were considered very safe securities. One was one of the telecommunications industry's major accomplishment accounts. But the exposure of fake sitekeeping made it vulnerable to suddenly find themselves in one of the most stunning business fall downs. Gold does not give a person interest though, but looking at it clearly it does not back itself up from an institution or an individual. Since it does not depend on anything or anyone you do not have to worry about the risk, which is the only reason you get a small interest in banks. Those who disapprove of gold because it does not give an individual any return do not actually understand the position of gold as one of the most stable assets we have available to us. As an asset gold can stand on its own. And the reason that it does not lose its value is due to the fact that it does not have to lean on any individual or institution to get or hold its value. Gold should be considered as a reserve asset for times of emergency, which may spring up at any time the way things are going. If there were to be a currency crisis, gold would be the only thing that would be able to bring us out of the disaster. It would play as important of a role as it did for the Mexicans, Argentineans, and East Asians etc. These were all countries that were prepared and therefore saved despite the huge problems that swept over those countries. The United States currently has a huge lingering debt but no matter what happens, the individuals that own gold will be grateful they do, as it will be something they would be able to rely on without fear. Gold is considered not only as a precious rock but also as solid rock.  

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