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| English: 1 oz (Troy ounce) of fine gold Deutsch: Eine Unze Feingold mit Zertifikat (Photo credit: Wikipedia) |
In order to understand why gold is a safe investment suffices to observe the gold prices fluctuation. The price of gold increases significantly whenever the value of paper-based currency declines. What makes such a phenomenon possible is the fact that economies that rely on fiat money systems tend to create more paper reserves as soon as the business sector undergoes a period of contraction. They do this in an attempt to stop any possible bank reserve shortage. Nevertheless, such a measure can only cause loss in economical value on a long-term basis.
In consequence, gold and its many forms of investment stand out as an excellent way to gain more financial power, especially in the context of the imminent threats in today’s economic environment. To convince yourself of the truth, all you have to do is read the most recent gold news. Paper-based currency will never be characterized by stability. Many investors understand this and that is why they are motivated to buy gold. In their viewpoint, this metal becomes a hedge in front of unpredictable economic phenomena such as inflation.
Gold investment can have many advantages. The most obvious is the fact that this precious metal keeps its power of purchasing real goods and services against the backdrop of an economy affected by crisis. Furthermore, gold investment is encouraged in many countries. One of the examples is the European Union where people that purchase gold for investment are exempted from paying a Value Added Tax for the respective amount of gold.
In spite of all the benefits, many people are still hesitant when it comes to buying gold. This is because they thinks that gold is too expensive, a belief that is not based on reality. Gold can be acquired under many forms, in accordance with various investment purposes.
One of the most popular forms of gold investment seems to be represented by gold bars. The latter are fabricated in a variety of weights and sizes, which range from one gram to one kilogram. Once you decide to sell your gold bars, you will not encounter much trouble. Gold bars are usually sold with a premium above the value of the gold at the time of sale. The amount of this premium depends on the size of the gold bar.
Gold can be acquired in many other ways. Some of these include gold coins, gold exchange traded funds, gold certificates, gold mutual funds or gold production companies. It is just a matter of time and experience until you find the gold investment form that will yield the best results for you.
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