Thanks to the vagaries of the changing economic situation as well as the uncertainty of the financial market, a large number of people have begun to invest in gold. Well, they are using the same sensible investment techniques, followed by their ancestors who considered gold to be one of the steadiest of fixed assets and currencies. In fact, gold has never depreciated in value, when compared to paper currency; so you should not be surprised that this precious metal has appreciated about 46 percent over the last two years. Imagine it skipping from around 30 USD an ounce in the early 60s to around 1450 USD an ounce this year. So here are some reasons why the world is looking up to Gold and why this should be considered to be one of the best investments in your investment strategy.
The inverse relationship between the price of gold bullion and any sort of currency in which you wish to trade are closely related. When people begin to lose faith in major currencies like the dollar, they start bidding up the price of gold. Conversely, when the world begins to consider these currencies as stable, the price of the gold remains stable and high. That is why having gold in hand as a trading currency is quite a sensible option for the serious investor.
Governments choosing to print more money to get their failing economies up and running are in essence devaluing their currency. The US government have been doing this for some time now and as more and more Dollars are being printed, the balance between gold and USD grows even further apart. All the smart investors are heading for gold, driving up prices of this precious metal.
Gold can be considered to be one currency, which is of immense intrinsic value and is also limited in terms of supply. You cannot print out gold in a printing press and dole it out in the Forex market. In the 70s gold was around 40 USD to currently more than1400 USD an ounce, this is a totally unprecedented quantum leap in the value of the gold, having said that, there are claim that Gold could reach as high as $5000 an ounce in the near future.
Gold as a hedge currency is definitely the best asset in your investment portfolio. It’s recommended that you should have 20-25% of your portfolio currently in gold. Governments and leading business men are buying up gold to safeguard against prospective global recession and the depreciation of the UD Dollar.
Gold as a steady and reliable investment is definitely an asset which you can be certain is going to appreciate in the long run, and in the future. So invest in gold, right now, for a secure future.
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