Third party risk
Modern paper money is not backed by anything other than debt and the confidence that these debts will eventually be paid off. If the debtor does not fulfill his obligations (bankruptcy of a company or bank, bankruptcy of the state), the money usually disappears forever. Anyone who places all of their assets in this monetary system (including on the stock exchange) is constantly exposed to relevant risks. In contrast, owning physical gold (gold coins and bars) does not expose you or your assets to any third party risk.
Depreciation of currency
After abandoning the Gold Standard in the early 1970s, Central Banks began printing unlimited amounts of money. Governments use this money to wage wars, keep costly campaign promises, subsidize dead economies, bail out banks, and thus continually fund the costs of tackling seemingly endless crises.
These actions systematically devalue currencies, and a rise in the price of gold is a sign of this devaluation. Real values such as gold and silver have retained their purchasing power for many decades. For example, in the period from 1970 to 2018. annual inflation in Germany was 2.7%. The price of gold (expressed in euros) grew by an average of 7.7% per year over the same period of time. The last three years have been even more favorable for the price of gold.
Our debt-based paper money system cannot last indefinitely. Even if interest rates and official inflation have been low lately, the compounding effect and the surge in private and public debt will ultimately lead to the collapse of our monetary system. With gold, you can preserve your assets during the transition from one currency to another.
As part of their current zero interest rate policy, Central Banks are encouraging the gradual expropriation of depositors. Because anyone who has money in an account loses their wealth every day due to a negative real interest rate. Some banks in Europe already charge a fee for keeping funds in an account. Therefore, you need to store your wealth differently if you want to ensure your long-term prosperity. This is why gold and silver should be in every investment portfolio - without risk from third parties.
Gold worth 10,000 euros fits in a matchbox. In the event of a serious crisis or emergency, a precious metal of this volume is easy to carry with you if you have to change your place of residence. Gold is a very liquid asset, which means it can act as a universal means of payment in any country in the world.
Important note: anyone who buys a precious metal for speculative purposes is constantly exposed to price risks in the short term. The price of gold is set on the exchange. Gold alone will not make you happy either. But as long as the above risks persist, you will always sleep soundly with a decent amount of physical precious metal.