Why invest in gold?
Gold was and still is the universal currency.
Gold can be sold around the world on a daily basis.
Gold is ranked as a security for monetary reserves and against economic crises.
Gold offers security
For milleniums gold is valued as a secure currency worldwide, which is permanent, independendly from financial crisis, currency reforms or National Debt. In contrast - rag money is a constant subject to such influences. Not only in terms of fluctuations in value but currently in terms of enormous losses in value.
The price for gold rises and falls depending on e.g. its demand. Gold was always precious and will always be.
Also in the international monetary system gold is still of prime importance. Due to its high demand of security, gold serves as an essential part of the monetary reserve for the central banks of the most economical significant countries in the world.
Gold is safe from inflation - it can not be produced and therefore be devaluated by governments. Hence this precious metal is an investment, which offers a stability of value and security - not only for banks but also for private investors. Factors which are of high importance nowadays and which can not be guaranteed through an other productive investment.
The increase of value of rag money
In consideration of the present financial crisis, governments e.g. the USA "print" more and more money. The enormous expansion of money supply leads to an increasing inflation rate. Because of that, not only rag money is massivly depreciating but also other printed forms of investments like stocks, bonds or holdings are affected.
In contrast to that - gold can not be produced by any government or bank in the world. It is not exposed to depreciate through inflationary usage and maintains its consistant purchasing power.
Gold is the most secure currency worldwide.
|