The world of the investor can be a tricky one and one which provides challenges in which they are looking to grow their wealth in a secure and consistent manner. Investing in Gold has historically proven to be a safe haven for investors providing both security and an established investment from which good returns are easily achievable over the longer term. It is difficult to find a match in the combined investment attributes of investing in gold.
Gold rewards investors at the most convenient of times, due to the sustainable spot price and the liquidity of the asset. This is particularly prevalent in times of financial hardship and economic downturns.
Gold by its very nature is a physical object which has the inherent ability to be liquidated at any time for a very low cost point. Gold has the very opposite characteristic of a debt type investment due to its liquidity features.
Gold has unique qualities which ensure that it does not corrode, tarnish or oxidise in natural environments. Unlike may commodities Gold is not under threat from industrial usage as it has very few commercial benfits in the industrial world and is only used in very specialist areas. This has been a major factor in the growth in gold price, especially over the past 200 years or so. As a result the complete gold reserves that have been processed over the last 4,000 years remain stored in vaults around the world. Gold is displayed globally either as jewellery, bullion or coins.
Gold reserves globally, measure something in the region of 160,000 tonnes. When trying to assimilate this it would appear that on the surface this would a great deal of gold. Due the physical characteristics, and by its very nature, gold is extremely dense. Therefore, if the complete global reserves were to be established in one place the total area would only measure somewhere in the region which is 19,683 cubic meters.
Gold is being excavated and processed (refined) at the rate of some two thousand six hundred tonnes per annum.
Measured against the gold that is already in existence above the ground this represents an annual increase of 1.625% . Relatively speaking this is a very small increase (inflationary) when compared to other market measurables. This increase is solely driven by market demand which has a direct impact on the daily price of gold. Probably the most endearing thing about investing in gold is that the gold market and the price of gold remains largely unaffected by the direct influence of politicians and investment banks.
Comparing this to the Euro and the Eurozone, which currently is the most hawkishly managed major world currency, is currently expanding at a ludicrous rate of 11.5% per year.
Combined debt defaults and inflation are now complimenting each other, culminating in a new an more severe crisis regarding the value of money. Gold has already risen 300% when measured against the New York stock market since 2003.
Inflationary effects combined with Debt defaults are now complimenting each other, culminating in the manifestation of a new and more severe crisis regarding the value of (promise to pay) money. In the period since 2003, gold has already risen in excess of 3 times (300%) when measured against the New York stock market.
Investing in Gold will continue to grow if the world's major currencies continue to plunge into the inflationary spiral that we are currently seeing around the world.
As an investment, gold does not really care what flavour the economic climate is, whether it be inflationary or deflationary. Gold has unique characteristics and attributes as an investment asset due to its restricted supply and its physical nature of virtual indestructibility. In times of strong economic growth gold can lose value which can be seen throughout the various phases of global economics. However if gold is invested in as a medium to long term investment then it can be seen to be a very sustainable and secure investment. (See Historical Gold Price Chart)
Buying Gold could be considered a shrewd investment especially looking at the way in which the world's major currencies continue to self administer their inflationary spirals that are affecting whole economies on a global scale.
Major changes in global monetary policies affecting the over supply of the Dollar, Euro and Yen will be necessary to stop gold prices from increasing significantly.
In consideration of all of the facts discussed previously in this article and still having a firm belief that the central bankers around the world will sometime soon increase interest rates far in excess of the real rate of inflation, it would probably be a good idea to avoid investing in gold.
Gold rewards investors at the most convenient of times, due to the sustainable spot price and the liquidity of the asset. This is particularly prevalent in times of financial hardship and economic downturns.
Gold by its very nature is a physical object which has the inherent ability to be liquidated at any time for a very low cost point. Gold has the very opposite characteristic of a debt type investment due to its liquidity features.
Gold has unique qualities which ensure that it does not corrode, tarnish or oxidise in natural environments. Unlike may commodities Gold is not under threat from industrial usage as it has very few commercial benfits in the industrial world and is only used in very specialist areas. This has been a major factor in the growth in gold price, especially over the past 200 years or so. As a result the complete gold reserves that have been processed over the last 4,000 years remain stored in vaults around the world. Gold is displayed globally either as jewellery, bullion or coins.
Gold reserves globally, measure something in the region of 160,000 tonnes. When trying to assimilate this it would appear that on the surface this would a great deal of gold. Due the physical characteristics, and by its very nature, gold is extremely dense. Therefore, if the complete global reserves were to be established in one place the total area would only measure somewhere in the region which is 19,683 cubic meters.
Gold is being excavated and processed (refined) at the rate of some two thousand six hundred tonnes per annum.
Measured against the gold that is already in existence above the ground this represents an annual increase of 1.625% . Relatively speaking this is a very small increase (inflationary) when compared to other market measurables. This increase is solely driven by market demand which has a direct impact on the daily price of gold. Probably the most endearing thing about investing in gold is that the gold market and the price of gold remains largely unaffected by the direct influence of politicians and investment banks.
Comparing this to the Euro and the Eurozone, which currently is the most hawkishly managed major world currency, is currently expanding at a ludicrous rate of 11.5% per year.
Combined debt defaults and inflation are now complimenting each other, culminating in a new an more severe crisis regarding the value of money. Gold has already risen 300% when measured against the New York stock market since 2003.
Inflationary effects combined with Debt defaults are now complimenting each other, culminating in the manifestation of a new and more severe crisis regarding the value of (promise to pay) money. In the period since 2003, gold has already risen in excess of 3 times (300%) when measured against the New York stock market.
Investing in Gold will continue to grow if the world's major currencies continue to plunge into the inflationary spiral that we are currently seeing around the world.
As an investment, gold does not really care what flavour the economic climate is, whether it be inflationary or deflationary. Gold has unique characteristics and attributes as an investment asset due to its restricted supply and its physical nature of virtual indestructibility. In times of strong economic growth gold can lose value which can be seen throughout the various phases of global economics. However if gold is invested in as a medium to long term investment then it can be seen to be a very sustainable and secure investment. (See Historical Gold Price Chart)
Buying Gold could be considered a shrewd investment especially looking at the way in which the world's major currencies continue to self administer their inflationary spirals that are affecting whole economies on a global scale.
Major changes in global monetary policies affecting the over supply of the Dollar, Euro and Yen will be necessary to stop gold prices from increasing significantly.
In consideration of all of the facts discussed previously in this article and still having a firm belief that the central bankers around the world will sometime soon increase interest rates far in excess of the real rate of inflation, it would probably be a good idea to avoid investing in gold.
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