Why Buy Gold?

If you’re asking why buy gold?, the answer is simple: gold is real money and an unmatched store of wealth. Unlike paper currencies that governments can print endlessly, gold holds its value over time, protecting your purchasing power against inflation, currency devaluation, and economic uncertainty.

Over the last decade, major world currencies—including the US and Canadian dollars, the euro, the British pound, and the Japanese yen—have lost between 70% and 80% of their purchasing power relative to gold. This trend is not new. Throughout history, fiat currencies—those not backed by gold—have always declined in value, while gold-backed currencies have endured and remained stable.

The Core Reasons to Buy

Protect Against Currency Decline: Gold doesn’t truly rise in value—currencies fall against it. Central banks worldwide continue to print money to manage economic challenges like aging populations, unemployment, outsourcing, and rising government debt. This ongoing currency erosion creates a perfect environment for gold’s value to hold strong.
No Counterparty Risk: Physical gold is outside the control of banks, governments, or corporations. Unlike paper assets such as ETFs or certificates, owning physical bullion means you hold the actual asset—no one else’s promise or liability.
Risk Management and Stability: Gold tends to be less volatile than gold stocks or equities. It provides a safe haven during stock market downturns and periods of geopolitical unrest. Unlike shares, gold isn’t subject to corporate earnings or market speculation.
Limited Supply, Growing Demand: Gold mining production has grown less than 1% annually for two decades. Environmental restrictions, geopolitical risks, and rising energy costs limit new supply. Meanwhile, demand is rising globally, particularly from central banks and consumers in China, India, and emerging markets.
Institutional and Public Interest: Since 2009, central banks have reversed a decades-long trend and become net buyers of gold, recognizing its value as portfolio insurance. Large institutional investors and pension funds currently allocate only a tiny fraction of their assets to gold—this means significant growth potential in demand and price as they increase their exposure.

Why Buy Gold Now?

In Canada and around the world, economic uncertainty is increasing. Inflation pressures persist, debt levels rise, and geopolitical tensions continue to create market volatility. Gold remains a tangible, liquid, and secure asset that diversifies your portfolio and protects your wealth from currency risk and financial market instability.

When considering why buy gold?, remember it’s a timeless form of money trusted by governments, central banks, and investors worldwide. Adding physical gold to your portfolio isn’t just about growth—it’s about preserving your wealth for generations to come.