Friday, September 09, 2011

Reason to Invest in GOLD

REASONS TO INVEST IN GOLD :

Gold as an investment haven. When the economy collapses, gold goes up. A simple law is confirmed in each of the crises that have occurred. In periods of inflation, gold is the best defense.

Sound investment. When the stock market is unstable, is about to burst a bubble in the housing market and interest rates are not attractive savings, gold becomes the most desirable investment target. Rather limited. Throughout history, people have extracted 153,000 tons of gold, about a hub height of the Statue of Liberty. Metal reserves are estimated pending extract from about 50,000 to 60,000 tons. At current estimated reserves will be exhausted in 15 years.

Financial crisis. If you fear the financial system, preferring to withdraw their savings in the bank for storage in a vault or under a tile, which makes many people now know that in the event of financial collapse, tickets may lose their value, gold is not.

Operating cost. The cost of extraction increases steadily. The deposits are increasingly deeper. Holdings that until recently were not profitable, have been reopened thanks to higher prices and new extraction technologies.

Increased demand for the "New Markets". In recent times, countries with emerging economies like India and China have seen their purchasing power is increased. Gold in these countries is a symbol of prosperity and its widespread use in social and religious festivities. No wonder that global demand is rising in proportion to the increase of income of these nations.

History. From the beginning of time, man has been fascinated by the precious metal. The first gold earring was found in Bulgaria and has been dated to 7000 years before Christ. No culture that has known has felt indifferent

Gold fever passion, attraction ... Gold has led expeditions and conquests, wars and invasions. Thousands of people moved into inhospitable territory for gold and built large cities on its way to California, Alaska ...

Price. Price. Ruled by the market, the price of gold may go up or down depending on supply and demand, but the Gold has never lost its value.

Value. The value of gold is not a function of their utility (although it has an important industrial use) and beauty but is determined primarily by their scarcity.

Eternal. Its chemical conditions are nearly unchanged. Or burn a banknote or a diamond can fracture (maximum hardness but relatively fragile rupture).

Gold Standard The economy is based on trust. A bank note has no value in itself, only if there is widespread belief that it does. Until recently, the paper currency backed by precious metals like Gold and Silver: "The Bank of Spain will pay the bearer the amount of ... Gold. " Now the only thing that gives value to a ticket is the confidence in the person issuing it. When this decreases, the ticket becomes worthless and we are in a period of inflation which is increasingly needed more money to buy the same item.

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