Friday, September 7, 2012

Is Gold Investment The Best Move?

By Jack Wogan


If you have watched the news lately you might be very much aware of the fact that financial markets are seriously affected by the whole crisis in the Eurozone. People are afraid to trust paper currency and for good reason. They know that if they choose to invest in stocks they might get broke pretty soon. So, is there a safe investment area where we can place our money, not lose it and make a profit? The answer is "yes".

Though it may be hard to believe, we have an answer to your financial problems - gold investments. Anybody who has paid attention to the news has realized that the price of gold has been breaking new highs and the US dollars breaking new lows. Now, this is a sign that the "gold standard" is still much relevant today despite the prevalent use of fiat currencies around the world.

Gold is a great haven when the political situation starts to deteriorate like it happened in Greece. Here, the EU and the IMF (International Monetary Fund) decided to restructure the country's debts. However, in spite of their efforts and the severe measures adopted, people still had to suffer. This shows that one can never trust paper money. Gold assets, on the other hand, will never lose their value because they can easily be traded at any time.

Many people do not know that gold is heavily bought by the major central banks of the world. The reason they do this is because they want to make sure that they will keep their independence and ability to support the fiat money. The thing we can infer from here is that bankers do not trust fiat money either and they want to remain on the market with gold in their reserves.

Gold can be purchased in many forms and this great possibility of choice is what makes it difficult for most people to find their preferred way of investment. Gold exists as coins, jewellery, casted bars of various weights and even in digital form. However, according to the latest studies, the I kilo gold bar ranks highest in the tendencies of investment.

Gold bars are produced in various shapes and sizes but they need to meet certain standard conditions in order to be accepted by the sellers. 1 kilo gold bars are produced by pouring the molten metal into molds known under the name of ingots. Gold bars that are smaller can be manufactured by minting or stamping from rolled gold sheets of the appropriate size. When you acquire the gold bars try to find out more about the dealer's reputation. The latter should sell the bars with an assay certificate.

In brief, gold makes a worthy investment as long as you know how to trade it and when. It will keep you afloat in these hard times because unlike the fiat money its value never fades away.




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