Do Rich People Buy Gold?

Are Rich People Buying Gold?

Well, Rich people love to buy Assets. And the Gold is the Asset so obviously rich people buy gold. Remember, Rich people are those who focus their time, money and energy behind buying Assets while everyone else focus on buying high status things so that they can look cool and rich.

Now, You have to understand the basic simple definition of an Asset. Asset is something which is likely to appreciate in future and may provide you Cashflow as long as you hold it. Examples of Assets are Stocks, Bonds, Gold, Real Estate, Mutual Funds, Art, Businesses, Online Properties…etc..

While the examples of high status items are Expensive Car, Branded Watches & Clothes, Country Houses, Private Boat and everything else that depreciate in its value over the time. Rich people use common sense. They know that a newly bought car will loose more than 50% of its value within first few years from you buy it.

So instead of focusing behind buying luxurious items, they focus on buying assets and thus over the time they get richer. Gold is the most precious asset. Rich know that whenever the governments and the central banks from all around the world will print more money and push it into the economy, the purchasing power of the money will go down and thus the price of the gold will go up.

And thus, Rich love to buy Gold. Rich people usually buy Investable gold means Gold Bars, Gold Coins, Demat Gold (Gold ETFs)…etc.. They don’t prefer jewellery gold.