Swiss America. The word gold conjures images such as treasure chests, pirate map, and wealth. In today’s modern world, gold isn’t just an old relic or shiny trinket. It’s also a viable investment. Let’s look at why this precious metal could be worth…well, you know.

Let’s first talk about stability. Gold is more stable than stocks, which are prone to swinging like a pendulum when they’re high on caffeine. Consider it like the tortoise winning the race. Gold is a popular safe haven for investors when the economy wobbles like jelly on a platter. It has been around since thousands of years, and it’s not going anywhere soon.

Now, you might wonder about diversification. Imagine that your portfolio is a basket of fruit. What if all you own are stocks (apples) and there is an apple blight. Not good! By putting some oranges in the basket (gold), you spread out your risks. This is like having multiple safety networks under your tightrope.

Inflation, on the other hand, is a completely different animal. Imagine termites eating your wooden house away. Over time, the value of your money decreases. Gold behaves like termite-resistant wooden; it is more resilient when inflation takes a toll.

Liquidity is also important. Need cash quickly? It is often easier to sell gold than it is to sell real estate or some stocks. It’s like having a mini-aTM at home, but without all the pesky fees.

Storage and security are the elephants in the room. There are many ways to safely store gold, such as safety deposit boxes, safes in the home, and even specialized storage facilities.

There’s more! There are more ways to do it! There’s no need to purchase physical coins or bars if you don’t want to. ETFs are Exchange-Traded Funds that track the gold price without you having ever touched an ounce. You can own shares in Willy Wonka’s Chocolate Factory without having to deal with Oompa Loompas.

Mining stocks are a relatively new concept. These are stocks in companies that extract gold from Mother Earth. These shares come with their risks – just like any stock – but they are a great way to get into gold investments without needing an actual vault.

It may be that you are wondering if it is time to get on board this shiny bandwagon. It can be hard to time the markets, since they fluctuate as much as my mood right before I start drinking coffee! Experts suggest that you allocate 5-10% of the portfolio to precious metals over a longer period of time, rather than try to time the market.

This is a story about my friend Joe. During his midlife crisis, he bought some gold coin instead of spending money on a flashy sportscar he could not afford. Then, years later, when he was in need of money to pay for the college tuition of his children, he found it! He saved a lot of money by using those coins instead of taking out loans.