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Wednesday, August 10, 2011

Gold is Money

Why own gold? You heard that in the TV advertisement over again. With the world's economic state in disarray, gold maintains its excellent value. The United States credit rating has downgraded to double A+ with the existence of political problems around the globe, investing in gold is still secure.

The price of gold has always been a hedge against inflation. With the decline of the dollar goal, gold seems to be a good value, imagine it is selling on the open market today at $1700 an ounce. Gold spot also reacts to supply and demand and can be influenced by consumer spending. When investing in gold it is better to get the actual gold in your hand rather than deal with gold certificates. Gold prices are truly secure because gold does not tarnish and does not have a quality grade. If you have inherited some type of gold coins or bars from your grandparents, it is no different than the gold that is being sold today.

Gold is different from other precious metals such as platinum or silver as their value is determined by their industrial use. Spot gold is money. It has always been a safe haven for investors in times of crisis and is also a good way to diversify your portfolio. As banking crisis occurring around the world, people have lost their faith in paper money and have begin to put it in gold. The gold price will hold its value in times of financial turmoil. So, if you are going to invest your financial assets, invest in gold but, find a reputable gold broker. You have to be careful as there are so many schemers out there also. Be careful with your financial assets.

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