Gold has had value since early man began to appreciate its beauty and its use as a metal. Undeniably, many asset classes have struggled for the past few years, but gold is certainly not among them. Despite the Global Financial Crisis it has continued a slow and steady increase in value. It is really the one single universal currency that has survived and thrived throughout the ages and continues to be the underwriter of true wealth.
In the past four or five years gold has almost doubled in value, and it's difficult to find another commodity that has achieved that kind of return. If you do the research you will find that buying an ounce of gold back a decade ago would have meant that it had gone up in value twice - a handy investment when the rest of the world economies are looking fairly fragile. One of the worst things that you can do with your personal wealth is to buy shares or assets that add too significantly to your overall risk profile and jeopardize your long term financial situation.
With the Bretton Woods agreements, the modern system of finance removed the requirement for countries to hold gold equivalent to the value of their printed currency. In times of economic despair, paper money may be worthless if people do not trust the government's promise to honor the value. On the other hand, in times like this gold becomes a stable base and a solid investment. Gold holds it value and even increases when paper cash decreases in value and effectiveness. Around the world, investors and governments increase their gold holdings whenever governments fall or countries go bankrupt.
In a way, people look on gold as a way to keep money safe. Because of the way people have valued it for centuries, many investors believe that gold will always hold a certain amount of value. Of course, when times looks better, you can always make money "shorting" gold as well as the price of it falls. Heavy with the weight of debt taken on to prop up banks and underwrite failing economies in Europe, it will be worth paying attention to non share asset prices as the western world heads into a period of economic growth. One must think that with outrageous levels of foreign debt and never before seen levels of unemployment for most western countries that precious metals and safe investments are going to be a good asset over the long term despite maybe some short term drops.
Since the mid-1940's gold is no longer the generally accepted standard upon which currencies are based, a system of floated and traded currencies are now the norm. Over the last hundred years, fiat currencies issued by the Germans, French, Russians, Chilean and Argentinian governments have all failed due to hyper-inflation and debt resulting in bankrupt currencies and huge devaluations in the countries assets. The US and Roman Empire have both seen fiat currencies fail. Each time a failure occurred, gold was used to shore up the finances of the country in question.
In the past four or five years gold has almost doubled in value, and it's difficult to find another commodity that has achieved that kind of return. If you do the research you will find that buying an ounce of gold back a decade ago would have meant that it had gone up in value twice - a handy investment when the rest of the world economies are looking fairly fragile. One of the worst things that you can do with your personal wealth is to buy shares or assets that add too significantly to your overall risk profile and jeopardize your long term financial situation.
With the Bretton Woods agreements, the modern system of finance removed the requirement for countries to hold gold equivalent to the value of their printed currency. In times of economic despair, paper money may be worthless if people do not trust the government's promise to honor the value. On the other hand, in times like this gold becomes a stable base and a solid investment. Gold holds it value and even increases when paper cash decreases in value and effectiveness. Around the world, investors and governments increase their gold holdings whenever governments fall or countries go bankrupt.
In a way, people look on gold as a way to keep money safe. Because of the way people have valued it for centuries, many investors believe that gold will always hold a certain amount of value. Of course, when times looks better, you can always make money "shorting" gold as well as the price of it falls. Heavy with the weight of debt taken on to prop up banks and underwrite failing economies in Europe, it will be worth paying attention to non share asset prices as the western world heads into a period of economic growth. One must think that with outrageous levels of foreign debt and never before seen levels of unemployment for most western countries that precious metals and safe investments are going to be a good asset over the long term despite maybe some short term drops.
Since the mid-1940's gold is no longer the generally accepted standard upon which currencies are based, a system of floated and traded currencies are now the norm. Over the last hundred years, fiat currencies issued by the Germans, French, Russians, Chilean and Argentinian governments have all failed due to hyper-inflation and debt resulting in bankrupt currencies and huge devaluations in the countries assets. The US and Roman Empire have both seen fiat currencies fail. Each time a failure occurred, gold was used to shore up the finances of the country in question.
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