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Sunday, 26 May 2013

10 facts about gold

10 facts about gold
10 facts about gold
10 facts about gold

Here are 10 facts about gold that you might find interesting.

1)  Gold has to go higher soon. Here is why? 

People are tuning to gold, because when Spain introduced more gold into their monetary system, it caused a devaluation of gold, the same can be said for the “money printing” of currencies around the world. And as we can see from the rise in gold’s price since the 1970s because of the continuation of the expansion of the monitory base, if we apply the same logic, the price of gold has to go higher in the coming years! (as will the price of everything else).

2)  Comparing Gold To The US Dollar

Regarding volatility, people often equate a commodity or commodities as being volatile. No one ever questions if it is the US dollar which is the volatile one moving against everything else. Lets face it, how often have you seen all commodities  fall relative to the US Dollar.

3)  Central Banks are buying up gold BIG TIME!

The point about gold’s value is that gold cannot be printed, like paper money. Gold has been valued since time began. The supply (new production) is relatively fixed while the demand fluctuates. It is recognised as a store of value both by the world’s central banks and by private individuals worried about the devaluing of paper money that is the inevitable consequence of Japan’s, America’s and UK’s Quantitative Easing policies.

Central banks are still actively buying gold. But the gold market can and is manipulated by interests not wanting to see the US dollar embarrassed by its declining value being made obvious by the gold price escalating. If these interests can suddenly flood the market by selling 300 tons of gold ‘futures’ in a few hours they can guarantee unsettling people’s trust in gold. But only for a while. The demand for gold has not disappeared. Retail demand has rocketed in recent weeks in response to the gold price decline consequent upon the market manipulation that has occurred.

4)  People get caught up in short term price movement.

Gold is NOT an investment, it is savings. If your grandpappy had opted to keep a $20 bill vs an Ounce of Gold (approx $20 value at that time) in 1913, how would your inheritance look today? $20 bill = $20 bill, 1oz of gold = 1oz of gold (approx $1500 value today).

It is this key element, the long run wealth preserving effects of the precious metal, that keep an investor as a rational gold “saver”. Investors savings be worth something in the future when their children or their grandchildren receive them.  Don’t get blinded by the short term price movements.

5)  Gold is a stable store of REAL VALUE.

Two thousands year ago you could buy a full clothing set for an ounce of gold, today in 2013, a full clothing set or suit will cost the same for an ounce. You will still get the same.

6)  People are buying GOLD first.

 At the moment there is a swift of wealth from west to east, and we know that china, Brazil, India and most of Asian country value gold more than people from west like Europe & US, Canada etc, maybe that’s why demand of gold increase and resulted the price very high. Even the Chinese and in brazil, india people are holding gold even in small amount. It is being reported that in 2013, before Asians will not buy a BMW car and expensive precious stuff first, they buy gold first, it’s totally different with western people, so when they are rich they have back up when something bad happen in world economic. Even china government encourage the people to buy gold, and at the moment the demand of retail gold is increasing cause the price little bit cheaper. Sound crazy but it’s the fact in Asia.

7)  The elite in the USA are buying gold. 

The Elite or those societies that are manipulating the governments and economy are said to have been buying gold and silver by the ton. They know that there is massive amounts of debt in the system right now that they have created and they are buying up gold right now as they prepare for massive inflation and a US currency that is losing value by the day.

8)  Longer term gold wins the race. 

Gold is a more robust market but a lot more sensitive to “news” (real or created).

Ask yourself the question if you were given the task of preserving wealth (say a million dollars worth) and the capsule to be opened in a 1000 years time . . . what would you put in it ? USA dollars or gold bars? Whether we like it or not nothing is going to change with gold in 100 years from now.

8)  Gold is backed as an investment. 

When someone wants to or is able to calculate the difference between the value (based on “real” gold price)of “paper” gold, and actual gold, this will push the gold price well into the +$2G range. What else is there to “backup” all the financial transactions in the world today? (The “derivatives” market is another “kettle of fish”, the new gold supply could not possibly support the 100′s of trillions of $$ traded each day!) Your best bet is gold by far!

9)  Gold is not another paper investment. 

Many people buy and physically own gold for the intention of having value they can feel and touch, these people are less concerned about the everyday ups and downs of the market and more concerned about having something they value and that others may value in the future.

This can be for any number of things: they are uncertain about the strength of the monetary system, they don’t trust banks holding their cash, they want other types of investment other than land etc., they want something valuable that they can give to future generations. It makes sense to to invest a large percentage of your money in gold, investment should vary, but gold is and investment you can most easily protect from the outside world.

10)   Gold Holds Real Worth.

Gold as an investment pays no dividends but will always be worth something, someday when paper money is not. No one knows when this will be, but the way the US government are printing money, they are speeding up the process.


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