Why to Invest in Gold
#15 Peer Pressure
Celebrities are wearing it on their cellphone, covering their leggings and on their teeth. This surely will have a positive effect on the demand, thus raising the price.
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15:
Peer Pressure
Celebrities are wearing it on their cellphone, covering their leggings and on their teeth. This surely will have a positive effect on the demand, thus raising the price.
14:
Less Supply
Australia is one of the biggest producers of gold in the country. If their legislation passes a proposed bill to tax mining industries, this could bring the supply down and the demand up. This means more money for those who hold gold.
13:
Universally Recognized
Gold is known all around the world. This way you never have to worry about having the right currency.
12:
Diversifying
Having diversification in your investment portfolio is always good. Adding gold is a smart way to add a low risk investment.
11:
Collateral
Having gold as part of your portfolio allows banks to have a collateral that fluctuates very little. This is important if you want to get a loan. No need to get the mafia involved.
10:
Historical Prices
Unlike some other commodities, gold has proven to increase steadily over the last few years, including through the recession.
9:
Perception
Have you ever held a gold bar or a pure gold coin in your hand? It makes you feel rich and important. Especially a bar.
8:
Security
Being a precious metal and having an appeal for a vast majority of people, this ensures that gold is not going to lose popularity. It is used in jewelry and even to cover cell phones! (Victoria Beckham and her cellphone).
7:
China's Lending
Every nation backs their currency with... you guessed it, GOLD. China has been lending out money a lot lately, and they have to back up those loans somehow.
6:
Demand is Lower
Right now the demand is lower than it was in 2011. This means that the patient investor who wants to hold it as a long-term investment should enjoy this slight dip. Highest price in 2011 was $1637 per ounce and it is at around $1500 per ounce right now.
5:
Pretty Coins
Holding onto gold coins can be aesthetically pleasing. They mint a coin using certain weights of gold.
4:
European Crisis
In 2012 Europe is facing a crisis that could come back and affect the US. This would cause gold prices to soar again.
3:
Devaluing Currency
Since it is used universally, this is a safe way to keep assets at a constant level. If the dollar devaluates substantially tomorrow, gold will still be worth a similar amount.
2:
Finite Resource
Gold cannot be made out of the blue (even though Alchemists tried for centuries to prove this rule wrong). This means that demand is going to go up and people with gold will reap the benefits.
1:
The Gold Standard
Every country has a certain value that they give to every ounce of gold. This fluctuates and allows for the gain or loss in the value of the asset.
