Regal Assets Reviews

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Regal Assets Reviews
Gold provides a safe haven when country's economic policies and currency valuations are unstable. Uncertain currency situations experience seismic shifts in value best demonstrate the true value of gold. Countries will often devalue their own currency which has the effect of lowering the true value of its citizens bank accounts. Gold becomes the safe haven for serious investors and central bankers when currencies collapse.


Central banks stockpile gold in their vaults when global or regional economies show signs of uncertainty. This is the best way possible for countries to ensure the strength of their own currency and to provide certainty when it comes to international trade. Governments that enact poor economic policies such as taking on unnecessary debt or overspending on public programs to gain voter favor can see that country's currency plummet. When currencies struggle, import prices rise and the country's ability to pay diminishes as the money in the bank is worth less internationally. In some instances trading partners will demand gold as payment rather than currency.


With the Bretton Woods agreements, the modern system of finance removed the requirement for countries to hold gold equivalent to the value of their printed currency. What a country's printed money is valued at by its trading partners can be reduced seriously in times of economic uncertainty. This is the kind of time when gold becomes most valuable. With widescale industrial use still happening and the overall limited capacity for the world to mine gold, it has an intrinsic value that your paper money does not. If trading partners stop accepting the promises of a government, then usually those trades go back to using gold.


Do you even know how the money you carry around with you actually achieves or maintains any tangible value? Bills and coins are nothing but promissory notes issues by governments with a prescribed value. Foreign exchange markets trade currencies against each other in real-time which sets the true value of all floated currencies around the world. When countries falter their currencies can devalue so much that they effectively become worthless. In times like this, those countries will often be forced to exchange gold to acquire international funds.



Fiat currencies are now pretty much the standard internationally as very few countries back their money with gold and prefer to have more control over the value of their money supply. These types of currencies are susceptible to high levels of inflation and external debt and many have failed just within the last hundred years which then resulted in their citizens bartering or exchanging gold personally to establish real value of assets. In the past, two of the world's current super powers, China and the US have both had failed fiat currencies. After the failure of the currency, gold became the standard upon which the value of the new money was based.