There is a mountain of paper that bankers call “money”. This mountain and the population have something in common: they both increase rapidly. Concerning about future and looking for a way to invest money, everybody looks for a strong and reliable investment.

One of the assets that are now on the map is gold. But unlike money, the production of gold is growing in a rhythm that is five times slower. For the last decade, there were only 2 percents of annual increase in the supply of the yellow metal. It is a common sense observation that there is not enough gold to go around.

To make things harder, different industries drive demand for gold on an almost daily basis. Requests come from places like dentistry, bars and coins, jewelry. Another amateur look puts the gold on the list of “must have” assets.

Some European countries have a strong demand of gold, due to the decision of a key player on the market. The European Central Bank decided to buy government bonds from the Euro zone to address the debt crisis of a major European country. Other Western countries have a rising debt level as well. The US dollar is under the threat of being driven down by the recession. Put together, these make gold a safe store of wealth and a reliable asset.

It is time for the gold to be on high demand, unlike the dollar. The relation between them is on inversely principle. A fluctuant and threatened currency makes the precious metal a reliable defense against currency weakness. The central banks of the world are now the major holders of gold. They are also the net buyers while in the past banks were the net gold sellers.

In a risk-averse environment, risky assets are no longer on the map. It is time, again, for gold, Treasuries and dollars, as solid assets. Among them, the gold has the advantage of being a tangible product, unlike paper money, stocks and shares.

Learn from professionals how to buy gold bullion in times of recession.