Saturday, October 13, 2012

Economy, Gold And The World

By Jack Wogan


More and more financial experts warn us about the terrible shape that the economy is in. Despite the growing efforts that many countries have made, it has become clear that the global economic crisis that has started back in 2007 is definitely not going to end until 2017. These warnings are not short of alarming, this is precisely why there are lots of private investors that are looking at 1kg gold bars, gold bullion coins, gold ETFs, gold mining shares or any other gold products in order to avoid any potential financial hardship.

The only solution to this problem would be to change the global socio-economic policy. However, at this point such a situation seems to be highly farfetched. This is exactly why so many investors are looking to buy 1kg gold bars, gold bullion coins, gold ETFs, gold mining shares as much as they can at the moment. These days one can simply choose to invest in this precious metal without any problems, directly from the online dealers. Such transactions can be done from the comfort of your own home without many fears.

On the other hand, what one should fear are the massive debts and that fact that the high inflation rates are going through the roof. Due to these high rates of inflation the paper currencies have lost a good part of their purchasing power, unlike good that seems to be doing great. It is true that the precious metal market has become more volatile, however this is just because of the precious metal is going through a correction period. Even so, the yellow metal has more purchasing power than the dollar and the euro.

These days with one gram of gold one can purchase the same amount of goods that they could 100 years ago. This surely does not apply to paper currencies. Many of the emerging markets are heavily investing in gold such as: Russia, China, Brazil, Thailand, Bangladesh, Venezuela etc. Central Banks around the world are looking to diversify their reserves with gold as this appears to be the only reasonable option that we have at this moment.

When it comes to diversifying the investment portfolio gold is clearly the way to go. Regardless if you are interested in 1kg gold bars, gold bullion coins, gold ETFs or gold mining shares, this is the best choice that you can make.




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