Investors Choose Gold Rather Than Any Other Precious Metal
Any investment poses risks, especially in times of economic instability accompanied by a decreasing purchasing power.
But a professional investor is able to minimize those risks, by investing wisely and knowledgeably in assets that are the least exposed to economic fluctuations, such as gold bullion, for instance.
Why is gold an all-time favorite against other precious metals? First, because it has been historically proven that gold is one of the most stable and enduring assets.
No politics or market caprices have been ever able to devalue it.
Or the greatest risk for an investment is posed by time, with the changes it may bring about.
As regards gold, however, one knows its value will remain predictably high at all times, no major price fluctuations threatening to reduce the overall value of the prospective investor's portfolio, if the latter consists of gold bullion.
And gold represents not only the best protection against devaluation of currencies, but it also has other advantages for a wise investor, being subject to various tax exemptions.
Besides, retail investors are having an easier access to gold products these days, retail investment rising by 25% only from the third quarter of 2009.
Significant quantities of gold are demanded on the jewelry market, especially in India and China.
The industrial demand is no less spectacular, both electronic industry and nanotechnology or biomedical sciences increasing the demand due to the gold components they use.
One may ask whether this frantic demand should not be considered rather as a hindrance to investing ardor, given that it is likely to lead to higher gold prices, especially in conjunction with the limited supply of gold globally.
The answer is 'no' because the dynamics of this cycle is that the gold demand will be the one to increase further due to the reasonable expectations in the current context that gold prices will be always higher.
So it seems wise enough to invest in products whose prices will always increase.
If the predictably greater and greater demand is a guarantee of higher prices and consequently higher gains, investors have good reasons to prefer gold.
Figures are the best supporting evidence in this context.
While the demand for gold increased by 8% on the jewelry market and by 13% on the industrial market against the third quarter of 2009, retail investors in that quarter reached a record-high in terms of net value, namely 9.
6 billion US dollars.
The investors' preference for gold is in no need for further reasons.
The weight, rarity and permanent value of this metal can only benefit from economic and financial crises or unfortunate political decisions.
But a professional investor is able to minimize those risks, by investing wisely and knowledgeably in assets that are the least exposed to economic fluctuations, such as gold bullion, for instance.
Why is gold an all-time favorite against other precious metals? First, because it has been historically proven that gold is one of the most stable and enduring assets.
No politics or market caprices have been ever able to devalue it.
Or the greatest risk for an investment is posed by time, with the changes it may bring about.
As regards gold, however, one knows its value will remain predictably high at all times, no major price fluctuations threatening to reduce the overall value of the prospective investor's portfolio, if the latter consists of gold bullion.
And gold represents not only the best protection against devaluation of currencies, but it also has other advantages for a wise investor, being subject to various tax exemptions.
Besides, retail investors are having an easier access to gold products these days, retail investment rising by 25% only from the third quarter of 2009.
Significant quantities of gold are demanded on the jewelry market, especially in India and China.
The industrial demand is no less spectacular, both electronic industry and nanotechnology or biomedical sciences increasing the demand due to the gold components they use.
One may ask whether this frantic demand should not be considered rather as a hindrance to investing ardor, given that it is likely to lead to higher gold prices, especially in conjunction with the limited supply of gold globally.
The answer is 'no' because the dynamics of this cycle is that the gold demand will be the one to increase further due to the reasonable expectations in the current context that gold prices will be always higher.
So it seems wise enough to invest in products whose prices will always increase.
If the predictably greater and greater demand is a guarantee of higher prices and consequently higher gains, investors have good reasons to prefer gold.
Figures are the best supporting evidence in this context.
While the demand for gold increased by 8% on the jewelry market and by 13% on the industrial market against the third quarter of 2009, retail investors in that quarter reached a record-high in terms of net value, namely 9.
6 billion US dollars.
The investors' preference for gold is in no need for further reasons.
The weight, rarity and permanent value of this metal can only benefit from economic and financial crises or unfortunate political decisions.
