6 Good reasons why you should invest in gold
A brief history about gold
One of the first metals to be mined in its native form, and not found in among other elements, its both indestructible and alluring. Ancient civilizations have used it to create exquisite objects which have been used in tombs, temples and jewellery.
Used in the tombs of the very rich nobles, a wealth of figurines, cups, masks, diadems and jewellery have been discovered. Created by proficient craftsmen more than 3,500 years ago.
Sources of gold
Many ancient civilizations have acquired their gold from rich deposits in the middle east, Yemen, southern Africa, Egypt and Arabia. These deposits were used by the Egyptian pharaohs, in Mesopotamia and Palestine.
Inca treasures found in Mexico and Peru were thought to have come from Colombia.
Therefore the value of gold is held throughout the world for its great value and history and is entwined into cultures worldwide for thousands of years. Gold coins appeared around 800 B.C., during the reign of King Croesus of Lydia pure gold coins were made as currency. Throughout the ages people have continued to possess their own gold for various reasons. See ten good reasons to own gold today:
1. Gold holds its value
All through the centuries gold has always maintained its value, unlike paper currency or coins.
2. Gold is easy to buy
Its a fallacy to think that gold is complicated to purchase. These days there are many ways to invest in gold through the advent of exchange traded funds (ETFs). It's as easy as investing in stocks and shares.
3. Gold is steady when deflation hits
When prices go down and business slows, the economy becomes burdened with massive debt. In times like the Great Depression of the 1930s, the price of gold escalated while other prices dropped sharply.
4. Gold protects the financial worth of money
Unlike a currency, gold is a concrete asset that cannot be printed at will. For example in the 1970s 700 ounces of gold was worth $25,000, but today 700 ounces of gold would be worth $1 million . Over the long term having gold as an investment will always keep its value, unlike major currencies which are declining.
5. Gold is in great demand
In many countries such as India gold is interwoven into the culture. Making India one of the biggest gold consuming countries in the world. Jewellery is one of its many uses, used heavily during the Indian wedding season in October. This is when gold is at its greatest demand. In the Chinese investment market its still seen as an established form of saving and the appeal for gold has stayed steadfast.
6. The strong outlook for gold
The current demand for gold still continues to out strip supply. Its use in jewellery and technology applications makes up for the current 65% demand. Both China and India account for the greats demand in consumption in the world today. The net sellers of gold are no longer central banks, but instead recycled gold has fulfilled that demand.
The reality of gold investment
If you're going to invest in something don't just for paper investments such as bonds and stocks. Gold has always preserved its value over the long term. Through out the centuries its always served well as an investment while other currencies have corroded away, thus making it a solid investment.
© 2016 Helen Bolam
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