Page 14 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
In fact, some investors have never experienced a downturn. But if you discuss property with anyone who was affected by the crash in 1987, you’re likely to have a very different conversation.
Think about it, what investment lasts forever?
Let me mess with your head a little. A lot of people are talking about a “cost of living crisis” – how would YOU be fixed if, down the line, these times are referred to as “the good old days?”
Yikes!
I want you to think of gold as not only a type of investment but also a form of insurance. We don’t know what’s going to happen.
Beating Inflation
I appreciate this is probably a no-brainer, but I want to set out my thoughts. Let’s keep it really simple: if inflation is higher than the returns you receive, then you’re losing money.
Get it?
Over the long term, you want to grow rather than reduce the size of your investments. You MUST beat inflation to improve your purchasing power. For example, if you would normally receive, say, a 7% return from an investment, but inflation is running at 8%. You’re LOSING purchasing power.
I know a lot of people who live in a fool’s paradise. They used to get a 3% return on their investments when inflation was, say, 2%, and they complained (even though they were making 1%). Now, they get a 7% return and feel they’re doing well. But if inflation is 8%, they’re doing worse than they used to (they’re losing 1%)!
What You’ll Learn from This Book
This is the first step in what could be a long journey, but one you’ll hopefully enjoy.
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