Whether Invest in Gold or in Fiat Currency

We using Gold from ages for investing or saving money. Before 1971, currency-notes, debit cards, and credit cards are attached to gold. And it was called "Gold Standard" so Whether Invest in Gold or in Fiat Currencies.

When we study investment in the context of financial management, It is essential to have knowledge about natural mineral assets, which have worth it, really worth it, in the stream of time-span for a long time ago. Even, when accessibility of currency notes, debit card, and credit cards (categorize in plastic currency) are easily available.

So here is the commonly asked question is that Nowadays when paper currencies, plastic currencies and even digital currencies (bitcoin, etc.) are also available So, Why should we buy gold? , and In another way, What is the Gold's future, is it bright or not?

Whether Invest in Gold or in Fiat Currency
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Everyone knows that We have been using Gold from ages for investing or saving money. Before 1971, currency-notes, debit cards, and credit cards are attached to gold. And it was called "Gold Standard" then after 1971, An American President, Richard Nixon broke the relationship between Gold and Currencies and then he introduced the concept of Fiat Currency that is a new way of valuing money, and a medium of exchange value, which obviously does not have use-value, but have value only because a government maintains its value and government have the power to fluctuate it, or in the other way parties who engaging in exchange of fiat currency, agree on its value.

However, it is also a fact that Gold is always better in the longterm. In terms of pure Gold, explaining some reason for being better from other types of currencies and it stand-alone appearing as a King of Currency Asset now and expected to be forever.

The first reason is that When there is inflation in the economy, which used to have a hardcore effect on currency notes but Gold has a capacity to absorb inflation in itself and could easily stand out from this problem.

Another reason for giving priority to Gold expects from other paper or plastic assets because they may become depreciate and then have to claim into state banks as waste papers. And this is finally one of the major reasons prior to many times that are other fiat currencies would rely on devaluation concept, over and over again in short-term and then look at medium-term, I mean 5 years time, the cost has been upward more than after long-time of 10/20 or 30 years, cost risen so much enough.

 But By the way, if you are a Gold Investor, you know it well that gold maintains its value in the long-term orientation of 10/20 or 30 years. For Instance, you see when you buy shoes, clothes, or any other food items in the past, it was less costly than now. And in the example of God, yes it fluctuates somehow but in the long-time, it gives you approximately the same value, So it's simple to understand the concept of devaluation in this context, by giving such a practical example.

Here are some points that are essential to understand when you want to become a Gold Investor.

  • 1- Gold is not for the investment it has a storage of value that's why businessmen also use it for filling their investment portfolio because they know that gold has its own value also in itself. So if you want to save money for future contingencies then instead of storing in banks or money jar, acquire Gold, because you know that it remains value forever.
  • 2- Gold has worth and value in bad times also, when any country has to face Hyperinflation in the economy where the country experiences an inflation rate of 50% or more per month. Like Venezuela, Hungary, Zimbabwe, and Yugoslavia all have experienced periods of hyperinflation. 
  • Another example of India, where Narendra Modi, Prime Minister of India take a step on 8 November, 2016, after meeting in the evening called by the Indian Prime Minister Narendra Modi. then soon after the meeting, Modi announced the Demonetization of Banknotes in which Rs of 200 and 1000 are totally banned and become zero value in the country. Modi claimed that the action would curtail the shadow economy and counterfeit cash to fund use in illegal activities and terrorism. But due to this Act, many of whom, whos have cash in Gold or money in Gold, is on the safe side and could sleeps well but other than whom, might be crying due to effects of demonetization.
  • 3- It is the point, you should know that if you want to invest in Gold, it normally gives you Capital Gain, not residual income like Interest from the bank on agreed time period or getting Rent from property assets on monthly basis, etc.
  • 4-  We can keep gold for decades, it's not perishable, but if in any case, not looking gold enough then it's no problem for a goldish to boil the gold and renew it in a pleasant attractive shape. 
  • 5- God is a easy portable asset, can be used to move in emergency times like War, etc.
  • 6- You can sell it whenever you want liquid cash, it always has an active market in which buyers are always available, anywhere in the world.
  • 7- It is a marvelous time when the population is growing in peak because never ever such type of peach in the world becomes a shortage of Gold due to demand-supply effect and that's why it's the main reason that Gold will gain more value thereafter.
  • 8- One another reason for Shortage of Gold, due to high demand, and limited availability of supply is that there was in the history where no so much mining of gold but  when industrial revolution becomes part of the world, and cost of mining was decreased but now increase the cost of mining because it's not easy to be found
  • 9- Another special use of Gold are becomes part of life like for example Gold's use in teeth in case of broken teeth, it becomes fashion in some wealthy people to show-off their richness, uses Gold teeth in their mouths. 
  • 10- Except for the above fact that we are using gold more and more also use in electronic devices, then that devices normally bin into garbage or scrap. And this waste lead to short the supply of Gold in worldwide.


If you want to save money for long-time for any contingency requirement of making a house, planning to save for education or health so never keep your funds into banknotes, it degrades the value. So instead of keeping your saving into banknotes, save your money into Gold, but here's an important aspect to know that don't invest your money into jewelry because designing cost will waste your money into the Air. So my advice for the smart investor is to always keep your saving money into plain gold like Gold's Coins or Gold's Biscuits. If you belong to a Muslim Religion like me, then you have to give 2.5% zakat in a year on your saving in golds is must but it still better than inflation. So gold is a good option but there a game to play is to understand the concept of diversification, don't invest all your money in gold either, a quote by Warren Buffett is that :
 Don't put all your eggs into only one basket.
It's my overview and research share with you about Gold and Fiat Currencies.
I hope you learned something about Practical Finance Knowledge, it might be never learned from school



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Beyond Narrative | Blog Where Every Single Word Matters: Whether Invest in Gold or in Fiat Currency
Whether Invest in Gold or in Fiat Currency
We using Gold from ages for investing or saving money. Before 1971, currency-notes, debit cards, and credit cards are attached to gold. And it was called "Gold Standard" so Whether Invest in Gold or in Fiat Currencies.
Beyond Narrative | Blog Where Every Single Word Matters
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