ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Education and Science»
  • Economics

Why Buy Gold Now?

Updated on March 30, 2014

Gold is "true" currency!

Gold is money, but money is not gold

Why Buy Gold Now?

With all the problems in the economy today, many people are considering investing in gold as a hedge against the uncertainties of the future.

What is gold?

Gold is the first and truest form of money. It is the most stable and value-sustaining asset the world has ever known. In its essense gold is currency. It was the original store of value and used as a means of settling debts with traders up until the late 19th century. Gold is accepted in over 200 countries.

Most people understand "money" as the paper currency that circulates in the economy, the paper that we get paid in, the paper that we exchange for gorceries and the paper we pay or debts with. But, what would happen if the people who accept these paper currecncies in settlement of debts refuse to take that paper anymore?

Gold, however, is the only true and universal "money" against which every other currency is measured. Gold is money and money is a currency, but money is not gold!

Today, in early 2014 the world has no true "money" because all the worldly currencies are no longer backed by gold as was the case until 1971 when the world was taken off the

Gold Standard by then President Nixon. In effect, history has shown us that without the backing of gold there is really no true currency in the world as the financial turmoil in the past forty some years have demonstrated.

Because of this development the world today has no true "money" as currencies are not money that are backed by gold. Only gold-backed currencies have value, and a safe value.

At the turn of the 20th century, gold was officially valued at $ 1 for each 1.504632 gram, or $ 35 an ounce and its value was pegged at that value until 1971 when the US decided to let its value float on the world market.

Today, the world has no more money, whose value is backed by gold. Thus, paper money is only one currency that has no real value.

The gold standard corresponded to the beginning of the 20th Century 1.504632 gram of gold = $ 1. Due to the compounding effect has been the gold standard in the coming years, after the introduction, is constantly changing and in 1971 abolished entirely.

So, why buy gold today?

The top seven reasons to buy gold are as follows:-

1. Gold is a hedge against inflation and the inherent currecny weaknesses of paper money.

2. Gold is the only true form of "cash" and "money".

3. Gold is, in times of financial crises, the most stable investment.

4. Gold is in limited supply and its value will sustain turbulent times.

5. Gold is in greater demand than supply, and that menas that its intrinsic value will rise over time.

6. Gold transactions are exempt from the Value Added Tax.

7. Gold can take many forms including, bars, coins, wafers, jewellery, trinkets, icons, etc..

In essence, gold is the only true security for individuals, companies, and even countries as the world turns and financial crises emerge.

Do you invest in gold?


    0 of 8192 characters used
    Post Comment

    No comments yet.