Some people are interested in buying gold as insurance. It’s important to be realistic when doing so.
As we discussed in a previous article, when you buy gold as an investment, you’re betting on something happening that will make the price go up. When it comes to insurance, however, you’re not betting on a crisis that will result in a surge in prices any more than you’re betting on getting in a car accident to collect your auto insurance. If you’re expecting the price of gold to go up, you’re not buying it for insurance purposes. Instead, when you buy gold for insurance, you’re giving yourself the option to put it towards any unexpected emergency that may arise in your life. You’re putting money into something that can be used at will for more than just one purpose.
Gold Is A Multi-Purpose Insurance
The difference between buying gold for insurance and buying any other kind of insurance, such as auto insurance or health insurance, is that your gold isn’t stored with an insurance company. With other types of insurance, you can only access that insurance through your insurance company and only if an unfortunate event were to occur.
Gold as insurance is versatile. You still have the value of the gold no matter what you decide to use it for. You can always exchange it for value, it’s always in your possession to do what you please with it and you can cash it in to pay for anything from medical bills, home repairs or legal issues. If the price happens to go up, it’s simply an added bonus.