Why Gold is becoming an important investment ?
Thursday, July 17, 2014
Gold Investment - Before modern humans recognize other forms of property investment, stocks, mutual funds, or the latest foreign exchange Bitcoin, there have been the oldest form of investment and gold investment is still valid.
Gold investment is actually referred to as representing an investment at all times, for all walks of life and revered in all countries. Otherwise surely the American government would not bother employing thousands of soldiers to guard Fort Knox is now switching function as the building where the hoarding of gold just for the sake of providing an alternative in case of dollar inflation.
This is the reason why gold is preferred as a means of investment:
Gold values ??consistently in all countries in the world.
Gold is mined in India will have the same value as gold is mined in North Africa. This does not happen in other commodities. There are always different preferences over the world commodity share. Sterling currency is considered higher than currency. Saxum wine is more valuable than wine Clos des Papes. Yet wherever mined gold, the price remains the same, and equally valuable.
Gold as an investment instrument, easily portable and transferable (portable).
Land is also attractive form of investment, but the soil is not easily liquidated into cash and can not carry. In the event of a natural disaster or political upheaval, you may not want to bring the ground when displaced.
Gold as an investment instrument, will not be damaged, corroded or dead.
In ancient times, people save a fortune in the form of livestock and food products. but animals can die of disease and the results of food may be lost in the event of crop failure due to floods, droughts, one maintenance and so on. While paper money as a modern means of wealth storage can lose its value as affected by the impact of inflation and government policy.
Gold as an investment instrument can be easily shared.
If you owe two people, you can halve the gold coin and each will be worth the same. Intrinstik value of each piece remains the same and unchanged. This will not happen when you tear the paper money into two. By the time you halve the paper money, that's when your money loses its value.
Gold as an investment instrument has the same intrinsic value and recognized by any country in the world.
A commodity may be very valuable in his home country, but not valuable at all in other countries. Medium gold on the other hand, valuable wherever he is.
Gold as an investment instrument can not be created by government.
Paper money is an investment instrument that was created by the government. At the initial appearance, every gold coin in circulation is guaranteed by gold reserves equal value. Before the year. 1970, when the price of 1 ounce of gold equivalent of 35 USD, you may redeem 70 dollars to the government and took home 2 ounces of gold. But after President Nixon canceled the Bretton Woods conference, valuable paper money because the U.S. government says is worth to use paper money as legal tender. Paper money is not worth it because there are a number of gold guarantee. In times of inflation, political upheaval, and changes in government policy, paper money can lose its value.