In the modern, often volatile, financial landscape, historical memories of economic strife serve as stark reminders of the potential pitfalls of fiat currency. The Great Depression, where prices fell nearly 7% annually from 1930 to 1933, is still etched deeply in our collective consciousness. Similarly, the more recent crisis in Venezuela, where inflation rates soared to an astronomical 53,798,500% between 2016 and April 2019, underscores the risks we may face.
Amid these challenges, one asset has consistently held its own and often even appreciated in value: gold. But not just any gold. We're talking about fractional gold, available in denominations less than the standard one-ounce bar or coin. Here's why this form of gold could provide a crucial lifeline during a crisis.
Fractional Gold: Big Benefits in Small Sizes
During the Great Depression, the once-coveted $1,000 bill quickly fell out of favor due to its high denomination, rendering it inconvenient. In contrast, fractional gold offers greater flexibility. Available in various sizes, from 1/2 oz to 1/20 oz, and even 1/2 gram, this allows you to carry exactly what you need without the burden of excess weight or value.
This benefit proves vital during times of hyperinflation, such as Venezuela experienced. Amid soaring prices, Venezuelans turned to gold, with people using gold shavings to pay for meals and haircuts, as reported by Bloomberg in 2021. Being able to break down your assets into manageable increments can mean the difference between feeding your family or going hungry.
Gold vs. Paper: A Time-Tested Debate
During the Great Depression, the U.S. government raised the price of gold from $20.69/oz to $34.69/oz, causing its inflation-adjusted value to skyrocket. The universal acceptance of gold and its stable value make it a robust hedge against both inflation and deflation.
Even today, with most small stores and some large ones reluctant to accept $100 bills, gold retains its global acceptance. Amid an economic crisis, having assets that can be converted into goods, services, or cash wherever you are is a crucial advantage.
Moreover, fractional gold can provide a level of financial security that paper currency struggles to match. The USD, backed by trust and debt, can quickly be undermined in a financial crisis. In contrast, gold is a tangible asset that has maintained its value throughout history.
Lessons for the Future
The merits of fractional gold extend beyond crisis situations. It's a versatile investment that caters to a variety of needs, from paying for essentials like food and gas to converting into cash as required. And as we learn from history, it's about finding the right balance and ensuring your portfolio is flexible, resilient, and diverse.
Building Your Gold Portfolio
Entering the world of gold investing can seem daunting, but it doesn't have to be. With services like our Bullion Box, Wolf Pack Gold provides an effortless and exciting method for you to gradually expand your collection of precious metals. With a variety of plans, from novice to expert, we curate a mix of gold and silver assets, including fractional gold, delivered directly to your door.
It's an effortless way to gradually build a diverse and robust precious metals portfolio. So, if you're wondering what's the best precious metal to invest in or how to start, this could be your answer. Remember, investment is not just about the now, but ensuring you're well-prepared for the future.
With that, we hope you take away some useful insights into the world of fractional gold. As we journey into an unpredictable future, it's reassuring to know that there are tangible, reliable options for safeguarding our financial security. Here's to exploring the enduring power and flexibility of fractional gold.