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2010
31
May

Owning Gold

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Gold is, no doubt, one of the most precious metals available out there. Although, there are some who might question the value of gold over platinum, for example, and others who might declare that gold has been outperformed by silver, this metal remains an important asset worldwide.

Very many banks have started to buy gold, following the example of numerous nations who have started national political strategies based on accumulating this glittering metal. Take, for example, India who has bought last year 200 tons of the International Monetary Fund’s gold.

There are some who might argue that gold is simply a standard, a commodity, whose value never changes, that is, simply put, gold is what gold is. You cannot get rich or poor over night if you owe a certain amount of gold.

So, if we were to take big nations’ piece of advice, gold is a good investment for secure fortunes. The precious metal is known to be a hedge against inflation, both internally (against inflation or changes in the domestic purchasing power of the currency) and externally (against other currencies or changes in the external purchasing power of the currency).

It is a highly liquid store of value. It controls resources both at home and abroad, as it can be readily converted into cash by sale anywhere in the world. Its physical depreciation is negligible and it is still considered by many as a store of value and a safe haven in times of crisis, so now more than ever, is good to own gold.

Some of the most important attributes of gold are: indestructible, fungible and it does not depreciate. All these set it apart from other commodities. In the light of the uprising financial stress, gold is a store of intrinsic value of safe haven.

Since its demand is always higher than supply, and since new supply is increasingly hard to find, the value of gold will definitely not drop in the future.Nevertheless, gold is the asset that one must go for in these times. Despite the ongoing Greek financial crisis and the rise of the dollar, gold is doing really well on the market, because the price of gold rises as inflation rises.

Learn from professionals how investing in GoldMoney can help you in times of recession.

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