Investing In Gold And Silver For Capital Preservation And Appreciation

Middle East Crisis Pushes The Price Of Gold Up

Gold has a privileged statute among chemical elements. Being rare, shiny, ductile and malleable, it became very popular across the world. People chose to make their coins and jewels out of it even before the recorded history. The value of this yellow metal is still considerable nowadays. Those who own it are instantly provided with prestige. The precious element was given distinct forms, but its holders seem to prefer storing bullion coins or bars.


Gold has a privileged statute among chemical elements. Being rare, shiny, ductile and malleable, it became very popular across the world. People chose to make their coins and jewels out of it even before the recorded history. The value of this yellow metal is still considerable nowadays. Those who own it are instantly provided with prestige. The precious element was given distinct forms, but its holders seem to prefer storing bullion coins or bars.

Among other goods, gold has been included on the list of commodities. The value of these products is thus somewhat protected from the influence of worldwide economy. Of course, there are also some exceptions. Generally, people become interested to exchange their money for gold when the foreseeable future of the economy looks gloomy and inflation is menacing. Some economists however do not believe that the shiny metal can function as a hedge against the depreciation of currencies.

The economy at a global scale was impacted by the events in the Middle East. Although predictions have been made regarding the consequences of those happenings, no one could tell exactly what the future would bring. There is no news in the fact that the social movements affected the price of oil. But this upward course was also reflected in the prices of silver and gold, which rose 20 per cent. Although the value of gold has been rising in the last years, after the events in the Middle East and North Africa, it has reached a new peak. The worries have been augmented by possible uprisings in Saudi Arabia and Iran. Nobody could predict with accuracy whether these new events would be violent or not, but turmoil in Saudi Arabia was something no one wished for. Since the Arabian country is an important oil producer, any instability could be reflected by the price of petroleum and lead to a world crisis. All these worries are meant to influence the decisions people make when they are considering investing in the precious shiny metal.

As showed above, the accumulation of the precious metal is highly influenced by the uncertainty regarding global economy. When they cannot predict what will happen, people tend to take cautious measures. The crisis in the Middle East can be placed on the list of events with results which cannot be accurately predicted. However, there is one thing everybody can be sure of: global economy is affected by these events. In this situation, many people turn their interest towards buying gold. This is the explanation for the continuous selling and buying on the gold market, while other markets have been characterized by stagnation.

The turmoil in the Middle East is not the only reason why people worry for the future of global economy. The European Union is trying to solve its own problems, such as that of liquidity. In this respect, the example of Greece is illustrious. These issues may also represent a source of worries and uncertainties which may lead to a greater accumulation of gold. In this case, a wise investment would be in gold coins with high percentage of purity.

Investments in Gold Bullion coins are a good choice given their 99.9% purity

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