Paper Money is Backed by what? When there is a crisis in a monetary system, that paper money you’ve worked so hard to put aside can just disappear. It explains why it can be a good idea to change your paper money to gold. Using items with no intrinsic value for currency isn’t a new idea.
Bartering for livestock or household goods is a practice that dates back to the beginning of humankind. Even cigarettes are known to be used as currency in prison, at least in the past if not currently. There’s even the story New York Magazine ran outlining how a popular brand of household detergent had made its way into the black-market and was being used as a currency in the illegal drug industry. The point is, anything can be used as money if at least two people agree that it has value to them both — and that is precisely why the value of every nation’s currency frequently fluctuates.
Gold — A Universal Currency
Gold is a universal currency and it’s value is never in dispute. No matter where your travels take you, you’ll always find gold holds a high value. Diversifying some of your wealth by converting paper money to gold will protect you from any paper currency crisis. The most logical way to exchange paper money to gold is to purchase the precious metal, but that solution might lead you to the question, “Where can I buy gold?” and then “How do I know what it’s worth?”
What are my Options?
There are plenty of websites on the Internet that offer information on gold prices, everything from current market prices to the value of various gold items. Complete catalog listings identifying value to a variety of gold coins are also easily found on the internet. Such sites are useful for giving you an idea of what you can expect to pay for coins, if you decide to turn your paper money to gold coins. Additional searches on Google will garner lists of dealers who sell gold in many different forms including actual gold bars.
Due Diligence is Critical
It’s extremely important that you take care in choosing an e-commerce company to do business with when you buy gold. Look for one with at least a 3 year track record. Find out if they meet the International Commerce Laws, and investigate if the gold is produced in refineries that have been certified by the London Bullion Market Association (LBMA) stamped. You can take your research farther, but confirming just these three issues should tell you that the company you intend on doing business with is on the up and up. That way you know you’ll be getting a form of gold with a value that’s never disputed.
Don’t forget this important point; you’re not really “buying” gold, you are converting paper money into gold. You haven’t spent your money on anything. You’ve just changed it from paper to gold.