We live in a world that has seen the financial markets reach unprecedented heights followed by the inevitable free fall crash taking with it the livelihoods of many decent folk.
People have scrambled to look for ways of investing their money into something safe and under the delusion of a false promise have found that all did not seem as it appeared.
The property market is good unless your property is mortgaged, and with the state of the financial institutions there is no way of knowing whether to hang on or to sell.
This article therefore attempts to solve the mystery of what represents a good and safe investment based on historical data and proposes that buying gold must be the only answer.
Hedge Against Inflation As all investment students know, anything which acts as a hedge against inflation always represents a sound investment.
Buying gold is historically proven to achieve exactly this.
After all, a gold coin back in Roman times bought the equivalent of what it does now, namely that of a shirt suit and tie and a pair of shoes.
Why is that? Simply because the effort in man hours to produce a gold coin through mining and minting is equivalent or equal to the effort expressed in man hours of producing the clothing items stated.
The purchasing power of gold does not take into account what is happening to the fiat money our Governments have insisted we use as legal tender.
Gold has no respect for fiat money and its inflation caused by over excited politicians and bankers.
World Markets in a Flux World financial markets are very sensitive to global events.
Wars, the threat of war, national uprisings and revolution, especially in the Middle East give rise to tensions which precipitate gold and silver buying.
Let's face it, investors have always known deep down the stability of gold in relation to other investments, and in times of global uncertainty these same investors, despite having previously talked down the merits of buying gold, rush into the yellow metal as soon as anything appears to be going wrong.
With the Middle East tensions today, we only have to look at the explosive growth in gold prices to understand that a move towards the safe haven of gold is on the agenda and has been for many years now.
The Actions of India and China The demand for gold in China has nearly tripled in the last ten years and in India reached an all time high in 2010.
Together, China and India accounted for 51% of global jewellery, bar and coin demand in this year, a fact in itself worthy of being a reason to jump on the gold bandwagon.
This and the fact that the long term goal of China is to create a Chinese Gold Standard, thereby ditching the current dollar standard, again points to long term gold buying strategy for those savvy investors.