Business & Finance Wealth Building

Why Purchase Gold?

Why would anyone want to purchase gold? The benefits are as multiple as they powerful indeed, given the steady and inevitable slump of the global economy right now and the major depreciation in value of all national currencies it is little wonder that people are looking for some safer, more credible investment problems.
Purchase gold is fast becoming a priority on many investors' lists, and with good reason.
The entire credit market is taking a sharp nose dive and with it, interest rates are on the rise, whilst property values are sinking.
Whilst national currencies especially the American Dollar and the UK Pound are slowly declining, gold is able to resist such variations in the market, and does not depreciate to the same extent, meaning that 50, 100 even 1000 years later your investment will remain relatively stable.
Adam Smith, the founding father of modern day economics espoused a number of arguments and theories concerning the nature of capitalism and the most fundamental of these is the causal relationship between supply and demand.
Supply and demand are the two pillars of modern day society, as one increases the other decreases, so if supply outstrips demand, the price and value of a commodity slowly declines until the supply itself diminishes, and is then overtaken by demand.
This relationship has a direct bearing on trading and currency policies, and currently, global gold production is currently outmatched by demand by a significant degree which means that the price and value will increase.
Given that India and China, two of the world's countries with the highest populations are now wanting more and more gold as a result of the increase in their national wealth, this means that the value of gold is set to sky rocket in years to come.
Now is the time to purchase gold before values increase anymore! America has been in meltdown for some time now, with a ghastly alliance of uncontrolled and poorly regulated government spending, with a dramatic increase in trading deficits, this has meant that the US economy is facing a rather bleak future ahead.
The effect of this is that the value of the dollar will diminish meaning that other alternative investments and currencies will increase in value.
This is a surprising turn of events, given that there has been a major depreciation across many significant national economies and currencies across the world, the US dollar always enjoyed a degree of security and was hailed as an international safe haven of last resort.
With this economic powerhouse now on shaky ground, now is the time to purchase gold and its other investment options.
There are some drawbacks associated with gold, whilst it is a secure investment, and has enjoyed a major upturn in value, gold does not attract nor is it eligible for interest rates, so if you invest money in gold, your only way to gain access to your money is to then sell the gold off dependent on your investment option.
Whilst the gold market has now climbed in value by a major amount recently, this has only been as a result of the global trading crisis, and so the value may taper off if too many people decide to invest in gold as a trading option.
Banks also have access to a substantial amount of gold bullion, and have been threatening to sell it off for some time now.

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