The 10 Reasons Why We Investing Our Money in Gold
Publish on December 20th, 2009 | Author: Admin
Many people like to invest their money, but don’t know where they must invest it. Maybe this could be one option when we residing in their condition. Investing in gold, because we have several reason why people investing in gold.
- Gold is the single currency that is not under the control of any government and, therefore, in which cannot influence the politicians.
- The excess global liquidity and the growth of the money supply (M3) are causing a real devaluation of the paper currency.
- In Europe, interest rates are below the inflation and are, therefore, negative. The growth of the money supply and inflation are the main reasons that the “paper money” loss value daily.
- The gold is a value refuge in a crisis scenario. While diversification traditional, such as bonds and shares of alternatives, often fail in times of tension and instability of the markets, gold has demonstrated to improve the results of portfolios in times of stability and financial instability during the past years.
- All gold ore extracted in the history of mankind amounts to about 153,000 ton according to the World Gold Council. This is equivalent to a cube as high as the Statue of Liberty in New York. The gold reserves remaining do not exceed the 50,000 or 60,000 ton depending on the source. With a mining production annual 2,900 ton/year, in a period of 12 or 15 years is extracted the last ounce of gold of the earth.
- The world’s population grows by about 100 million a year. This exponential growth of the population, together with the limited availability of natural resources such as oil, gold, silver, platinum and other metals, will cause in all likelihood a rise even higher price of gold.
- There is a correlation between the oil price and the price of gold. It is very likely that the price of oil continued its upward trend helped by the increase in consumption of crude oil in some developing economies, notably China, India and Southeast Asia.
- The appreciation of gold in the emerging economies. The Chinese law changed a few months ago allowing for the first time to private investors buy gold. China has one of the savings rates highest in the world. In addition, India is the largest consumer of gold of the world and the gold has a dominant role in the Indian society. According to the demographic forecasts, India exceed soon to China in the ranking of countries with the highest number of inhabitants.
- Gold is an investment of high liquidity. It is both an active as a currency. There are very few other investments that can become so easily and quickly in the currency as the gold: without penalties, without waiting times, without any additional conditions.
- The trend has not gone unnoticed to the large global investors who have begun to buy gold in quantities unseen until now. This has contributed to a gradual increase the price of gold and is proving to be in some fantastic yields of more than two digits in recent years.
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This article posted in Categories: Money Investment
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