Reasons Why You Should Be Investing In Gold:
•Investing in gold has long been considered an important investment vehicle. Man has trusted the value of Gold for thousands of years as it is a hard asset with an intrinsic value that is recognized worldwide.•Gold has always represented the ultimate in wealth and prestige. •Gold is indestructible and does not rust, melt or devalue. It is easily transportable and easily stored. •You can take Gold coins with you anywhere in the world as it is an international currency. •Investing in gold is one of the few vehicles that have held up in the financial fall-out that has taken place over the last two years •Investing in gold provides diversification and protects your portfolio from fluctuations in the value of the traditional markets. Most portfolios are invested into traditional assets such as property, stocks, money markets and bonds. Therefore, portfolios that include gold are generally less volatile than those that do not. •Gold and silver are the only currencies not created and controlled by governments. All of today’s other currencies i.e. dollars, euro’s, yen, pounds and rupees do not represent a tangible asset and can be manipulated by governments. •Suppressing the price of gold is achieved by Governments and central banks lending or selling their gold. Luckily they won’t be able to do this forever and then the price of gold will increase dramatically. •Gold has kept its purchasing power over the long term and therefore a gold portfolio protects against inflation. The purchasing power of many currencies has decreased over time due to the rising price of goods and services. •Investing in gold is often used as a hedge against the U.S. dollar. The South African currency has been strong in relation to the dollar, but should this scenario change then the price of gold will rise locally. •The precious metal is an optimal investment in times of both inflation and deflation. •The supply of gold in the world is finite. Basic economics tells us that when the supply of gold cannot meet demand, the value of gold will increase. •“The rise in the
spot gold price
has been under way since April 2001, representing the most durable rally in history. The price has rallied by US$1 000, and, as a result, this also represents the most powerful rally in dollar terms.” Daniel Sacks (Portfolio manager at Investec Asset Management)speaking about investing in gold.
Gold can be bought in the form of bullion,
rare gold coins.
or
commemorative gold coins
Bullion would be either
gold bullion coins
or
gold bars.
Return from investing in gold to
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