Investing In Gold And Silver For Capital Preservation And Appreciation

Optimal Investment Means In Troubled Times

Given the weakening of the US dollar (the global reserve currency following the abandonment of the gold standard) as a result of the financial crisis and the soaring national debt, investors are resorting to gold as a safe investment vehicle. The government is responsible for the increase in gold rates also because of printing large amounts of money and triggering hyperinflation. Not to speak about its purchasing treasuries amounting to almost one trillion for aiding major banks. The Middle East political changes are also to influence the price of gold and the size of investment. And the global gold demand had increased twice last year only.


Given the weakening of the US dollar (the global reserve currency following the abandonment of the gold standard) as a result of the financial crisis and the soaring national debt, investors are resorting to gold as a safe investment vehicle. The government is responsible for the increase in gold rates also because of printing large amounts of money and triggering hyperinflation. Not to speak about its purchasing treasuries amounting to almost one trillion for aiding major banks. The Middle East political changes are also to influence the price of gold and the size of investment. And the global gold demand had increased twice last year only.

So, if the dollar doesn’t fare well, the gold does. So well, actually, that many distrust its soaring evolution, fearing a bubble. But, historically speaking, it has evidenced its reliability by keeping its purchasing power unchanged for centuries, and recently by appreciating constantly over the last nine years and hitting 3 decade highs. In short, it’s an optimal investment means for people knowing how to buy gold.

The prices are further expected to go on raising because of a series of factors, among which the lack of balance between demand and supply, the first doubling, as shown, in just a year, while the supply increasing only by 25% over twenty years. Gold rates are doomed to grow, no doubt of it.

And there is still room for further increase, for a number of reasons. First, currency reserves of foreign countries total some 9 trillion dollars. If the dollar sinks for good, all these countries are to change their reserves into gold. A simple calculation will show you that, if only 1% of these enormous reserves are to be transformed into gold, gold rates are to double immediately.

Secondly, central banks gave up their attempt at keeping gold rates low. They are buying gold so eagerly that they also contribute to the increase in its price. There is no denial now what might happen to them if currencies fail and the bond market with them. Therefore, it’s vital for them to expand their gold bullion holdings. If they don’t want to crash as well, they have to hedge their assets with safe investment vehicles such as gold or silver, in short, some valuables that don’t depend on currencies.

Consult specialists on how buying gold can aid you in times of economic troubles.

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