One of the most fascinating tales that humanity has ever conceived is that of money. “Money” is nothing more than a narrative. Even if a great number of people could disagree with the concept, the premise is correct. Simple twenty-dollar bills are worth practically nothing in today’s world. Only a piece of paper is involved here.

Everyone in the world, however, has come to the conclusion that everything possesses a worth, and this is the reason why we go about our lives associating things with the fictitious price that we have established for them. That is the one thing that maintains the cohesiveness of society. It is also the defining characteristic that differentiates us from other animals. Click on this link to learn more.

It is true that we were also the ones who invented tools, but the labor that we undertake with those tools must be compensated by someone else. The only species on Earth that is capable of functioning in extraordinarily high numbers according to norms that are fictitious is the human species. There is no doubt that there are bees in existence; nonetheless, this hierarchy is structured with the queen bee in mind specifically.

Until a new queen bee is created, there will be utter anarchy in the colony if the queen bee passes away. Additionally, the same can be said for ants. It is impossible for the ants from one colony to mix with the ants from another colony, and the same principle applies to bees as well at this point. We, as human beings, have the ability to go to different places and collaborate with one another.

That is not feasible, is it? The answer is financial gain. If you and I come to an agreement that I will do a service for you in exchange for a predetermined quantity of paper banknotes, then you will trust me, and I will then trust you. In the same way that this is the foundation upon which nations operate, it is also true of you and everyone else, with the exception of your family and friends. The question is, how does gold factor into the computation?

Gold Was Used as Money

A few thousand years ago, gold was used as a currency. Ancient civilizations praised this metal because it reminded them of the sun. In many cultures, the sun was worshipped as a god, and that’s how the value was given to this metal.

Fast forward to today, there are still countries that are backing up their printed banknotes with this precious metal. For individual investors, an opportunity exists to invest a part of their portfolio in this precious metal.

There are a couple of ways in which you can do that. The first one is in bullion. The second one is in coins. And the third one is in an ETF or a mutual fund. We’ll cover all of them.

Bullion

When you think of investing in gold, this is the first thing that comes to mind. There is a large bar made of it, and banks are hiding them in their safes. In order to get one of those bars, you need to have it certified for weight and purity.

Of course, this means that the item itself must have a serial number, which is done to ensure that it’s yours. The same thing was done thousands of years ago when kings embedded their coins with their faces. That is the same thing as the signature on a dollar bill.

The best thing to do is to get smaller chunks instead of one big bar. That makes a lot more sense. Imagine if you have one bullion and you invested a couple hundred thousand dollars for it, and you want to sell 10 percent of your portfolio. You can’t take a saw and cut it off.

That makes no sense. Instead, it’s much better to have more liquidity and sell during times of crisis. You can check out this Goldco review because it can help you make the right pick for a precious metals dealer.

Coins

Investors weren’t too bullish on coins during the 2000s, but after 2010, everything changed. Everyone knows about the crisis in 2008. It was a bad time to be in the investing world. Everything crashed and burned. The same thing is happening today with the pandemic.

We’re in a bubble, and no one knows when it’s going to pop. As soon as a crisis happens, the cost of gold skyrockets. That’s why many investors in the 2010s made changes to their portfolios and included gold. These coins often weigh less than an ounce, which is a much better option than buying big bullion.

Plus, if you get your hands on an old coin that has collector’s value, then you could potentially become rich. It’s better to sell them instantly to a collector for a higher price because it’s much better to trade with the ones that are in circulation.

ETFs and Mutual Funds

An ETF stands for exchange-traded funds. This is where you buy shares that are backed up with a fixed amount of gold. That could start from a tenth of a pound and go up as much as you’re willing to invest. These funds work exactly like the stock market.

This is one of the best options for investors because the whole process is much easier than buying bullion or coins. You would be surprised to know that many mutual funds have a part of their portfolio invested in gold.

There are few that are specialized only in the sector of precious metals such as silver and platinum. This is one of the best ways in which you can diversify your portfolio.

If you’re someone who’s into cryptocurrencies, it makes sense to have a part of your portfolio in the real thing, rather than putting all of your money in Bitcoin, which is the digital equivalent. It’s best to invest in precious metals during times of security and sell when there are times of uncertainty.