Should I Buy Single Grams of Gold?
Many investors see owning gold as a protective haven from inflation. As economic environments become uncertain, this precious yellow metal often becomes more valuable.
The value of gold has grown during 75% of tracked market recessions. Its history of stellar performance in economic downturns makes it a worthwhile option during recessions.
If you plan to buy gold for use in a recession, consider keeping single grams of it on hand. Grams of gold are more liquid than larger bullion items.
Can I Use Precious Metals to Facilitate Purchases in a Recession?
In times when the dollar holds less value, you may want to maximize your purchasing power by using precious metals to make purchases. Based on where you live, you might be able to.
As of 2023, nearly half of the United States have passed or are in the process of passing legislation to recognize gold and silver as legal tender.
Gold Grams vs Silver Ounces
Another option is buying silver by the ounce in addition to grams of gold. Single ounces of silver have higher liquidity than gold, are budget friendly, and may be more practical for smaller exchanges.
For example, at the time of this writing, June 2023, the spot price of a gold gram was $61.74, and the spot price of a silver ounce is $22.98. One way of looking at these is to consider the denominations of paper currency.
Would you rather use a $100 or a $20 bill to pay for a $17 purchase? Would the vendor rather return change for a $100 or a $20 bill?
While grams of gold may require calculating value differences between eggs and milk, complicating change-making, using silver by the ounce should be a little bit more straightforward.
Holding Grams of Gold Overview
Ultimately, whether or not to buy gold by the gram for use in an economic downturn is a personal and subjective decision. Each individual needs to consider their personal goals and risk tolerance, as well as the current gold price per gram. Some investors believe holding gold can help to protect their wealth in a recession, and others may choose to invest in other asset classes.
